Nearly $3.1 billion is owed to the 50 largest creditors of the cryptocurrency exchange FTX, which has applied for bankruptcy court protection in the U.S. Without specifically naming them, the exchange stated in a court document on Saturday that its top ten debtors are owed around $1.45 billion.
On Nov. 11, in one of the most publicized crypto meltdowns, FTX and its affiliates filed for bankruptcy in Delaware, leaving an estimated 1 million clients and other investors with losses of billions of dollars.
The cryptocurrency exchange announced on Saturday that it has started a strategic evaluation of its worldwide assets and was putting some firms up for sale or reorganization. According to a different court filing, a hearing on FTX's so-called first-day motions is scheduled for Tuesday morning before a U.S. bankruptcy judge. This controversy is a result of the FTX acquisition by Binance continuing to cause problems.
After FTX Australia was put into voluntary administration on November 11, 2022, the Australian Securities and Investments Commission (ASIC) suspended the company's Australian financial services license until May 15, 2023. This hasn't just impacted FTX; according to reports, BlockFi is almost ready to declare bankruptcy.
The crypto lender has stopped all customer withdrawals and deposits, but the Wall Street Journal reports that it is still acknowledging "significant exposure" from the FTX disaster. The turmoil has also affected the value of another cryptocurrency, Solana, which last week saw a 53.8 percent decline since the commotion started on November 2.
According to data from aggregator DeFiLlama, many investors and app developers appear to be abandoning the Solana blockchain, which is widely used for decentralized finance applications. The number of SOL coins deposited there has dropped to 24.74 million, a significant decrease from the 68.2 million seen in June. Ether has decreased by roughly 20% and bitcoin by about 19% in comparison.