According to a report from Bloomberg, FTX, a cryptocurrency exchange that declared bankruptcy in late 2022, owes over $3.1 billion to its top 50 investors.
The company’s new management is reportedly selling off digital assets to generate cash and repay creditors. In addition to the exchange, FTX’s subsidiaries, FTX Trading Ltd. and Alameda Research, also have investors who are owed money.
At the end of 2023, the total debt to affected users was estimated to be over $4.4 billion. Representatives from FTX have not provided any comments or details regarding the bankruptcy.
In December, the exchange sold approximately $1.8 billion worth of digital currencies to raise funds. Investment firm Cherokee Acquisition forecasts that FTX will not be able to fully repay its debts.
Investors are aware that their losses will likely exceed the compensation they are seeking. FTX’s bankruptcy case is being handled in Delaware’s state court.
