Cryptocurrency exchange FTX has warned in its bankruptcy filing that it could have more than one million creditors worldwide.
Last week, FTX filed for Chapter 11 bankruptcy, initially indicating that it had about 100,000 creditors with claims against the company. That number has now ballooned to more than one million, indicating the scope and impact of the crypto exchange’s failure.
In most bankruptcy filings, debtors are required to name their top 20 unsecured creditors. However, given the scale of its debts, FTX said it plans to file a list of its 50 largest creditors.
Over the past 72 hours, FTX says it has been in contact with dozens of regulators, including the U.S. Attorney’s Office, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
At its peak, FTX was valued at $32 billion U.S. and had more than one million users worldwide. On November 11, the crypto exchange filed for bankruptcy citing $8 billion in losses.
The company’s failure has had a chilling effect on the entire cryptocurrency sector.
The price of Bitcoin (BTC), the biggest cryptocurrency by market capitalization, is now trading at $16,500 U.S., down 75% from an all-time high of $68,000 U.S. reached a year ago.
