The collapsed-crypto exchange FTX in its bankruptcy filing indicated a “severe liquidity crisis,” claiming that it may have more than 1 million creditors.
“FTX faced a severe liquidity crisis that necessitated the filing of these cases on an emergency basis last Friday,” said the court filing, as per Reuters.
Watch | WION Business News | FTX’s Sam Bankman-Fried questioned by Bahamas Police
According to FTX’s submissions to the US bankruptcy court which were published on Monday, the company has appointed five new independent directors at each of its major companies, including Alameda Research, and is in contact with financial regulators.
The company which was among the world’s largest crypto exchanges filed for bankruptcy on Friday after a rescue deal by Binance, its rival, fell through and panicked traders took out $6 billion for it.
Also read | USA: SEC, CFTC and DoJ launch investigation into FTX’s collapse
More than 100,000 creditors are involved in FTX’s bankruptcy procedures, and that number might rise beyond one million, the filing said.
The figure came to light after FTX asked several FTX Group companies to submit a single, consolidated list of important debtors rather than several individual lists.
Also read | FTX says making ‘every effort to secure all assets’ after unauthorised transfers worth millions
Furthermore, the documents showed that FTX had responded to a cyber attack on November 11 after claiming on Saturday that it had discovered “unauthorised transactions” on its platform.
The sudden demise of FTX, a rising star in the cryptocurrency market that was valued at $32 billion at the beginning of this year has, spurred inquiries from financial and other regulators all over the world. The US Federal Reserve and Congress urged for more regulatory scrutiny of cryptocurrency finance on Monday.
(With inputs from agencies)
WATCH WION LIVE HERE
You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.
For all the latest business News Click Here
