FTX Owes To Big Firms, Including Netflix, Apple, Google, Binance, Stanford University

Jan. 26, 2023
FTX Owes To Big Firms, Including Netflix, Apple, Google, Binance, Stanford University

As the FTX saga continues to unfold, more details about the collapsed exchange have come to light. The recently released list of FTX creditors shows the scope of Sam Bankman Fried’s empire. The 116-page document revealed that FTX owed 9,693,985 creditors.

Attorneys for FTX filed the document on January 25 as part of bankruptcy proceedings in the US Bankruptcy Court in Delaware. Surprisingly, they are not all tech companies but media, airlines, crypto companies, charities, universities, and government agencies.

In a bankruptcy hearing in early January, US Bankruptcy Judge John Dorsey allowed FTX to withhold the names of its 9 million individual customers for three months. But the court requested FTX’s lawyers to hand over a list of institutions that invested in the company.

The filing does not detail the nature or amount of money owed. However, FTX has previously disclosed that it owed about $3.1 billion to its top 50 creditors after filing for bankruptcy last year, an estimated 1 million creditors.

On November 11, 2022, Sam Bankman-Fried’s FTX filed for bankruptcy protection in Delaware.

Bankman-Fried resigned as CEO and was arrested by the Royal Bahamas Police Force in December after US prosecutors accused him of stealing billions of dollars from FTX clients to pay debts. According to authorities, FTX clients lost more than $8 billion.

He pleaded not guilty to the fraud charge and was released on a $250 million bail package. The court set his trial to begin on October 2, 2023. The collapse of FTX has wreaked havoc on the crypto market, and the industry is now working to create more hedges to protect investors from vulnerabilities.

FTX Is Indebted To Some Giant Companies

In the 116-page document, the company highlighted top tech giants like Twitter, Google, Samsung, Netflix, Amazon, Linkedin, Apple, Meta, Microsoft, and many more.

Prominent crypto-related firms with funds stuck on the troubled exchange are Galaxy Digital, BlockFi, Circle, Coinbase, Genesis, Paradigm, and some subsidiaries of Binance. After the crash, Blockfi and Genesis faced troubles in their normal business and filed for bankruptcy protection.

The lawyers also mentioned some media companies, including CoinDesk, The New York Times, Fortune, The Wall Street Journal, and others.

FTX also owes money to the federal Internal Revenue Service (IRS) in the United States and certain foreign government entities in Japan, Guam, Hong Kong, and Australia, among others.

It is worth noting that the list mentioned the world’s largest airlines, such as Spirit Airlines (SAVE), American Airlines Group (AAL), and Southwest Airlines (LUV).

In addition, Stanford University, where Bankman-Fried’s parents work, is also on the list of creditors.

New FTX CEO John Ray III says that during the FTX bankruptcy process, he is working to keep the crashed exchange and its operations running as normal.  Earlier this month, the firm’s attorney, Andy Dietrich, said the company had recovered more than $5 billion in cash and easily sellable crypto assets.

Ray told the Wall Street Journal:

“Everything is on the table.” He added, ” If there is a path forward on that, we will not only explore that, we’ll do it.”

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.