Size, scope of FTX failure gets clearer as users fear worst
Just days after cryptocurrency’s third-largest exchange collapsed, the public is starting to get a feel of how messy FTX’s bankruptcy case could be
NEW YORK (AP) — Just days after cryptocurrency's third-largest exchange collapsed, the public is starting to get an idea of how messy FTX's bankruptcy case could be. Other crypto firms are failing as a result of FTX's unraveling, events reminiscent of the domino-like meltdowns of the 2008 financial crisis.
Users remained frustratingly in the dark Tuesday about when they might get their funds back, if at all, directing much of their anger toward FTX's founder and CEO, Sam Bankman-Fried.
In a court filing, FTX's lawyers said there were already more than 100,000 claims against the company and estimated that figure could grow to more than 1 million, most of them customers, once the case is complete. The court ordered FTX to provide at least a list of the company's 50 biggest creditors by Nov. 18.
The lawyers said the company is in contact with the Department of Justice, the Securities and Exchange Commission, the Commodity Futures Trading Commission as well as dozens of other state, federal and international authorities, confirming earlier reports that the U.S. government is probing the possibility that Bankman-Fried and his lieutenants violated U.S. securities law.
