The collapse of the cryptocurrency exchange FTX has been all over the news.
Cryptocurrency exchange FTX, which has filed for US bankruptcy court protection, said it owes its 50 biggest creditors nearly $3.1 billion.
The exchange owes about $1.45 billion to its top ten creditors, it said in a court filing on Saturday, without naming them.
FTX and its affiliates filed for bankruptcy in Delaware on Nov. 11 in one of the highest-profile crypto blowups, leaving an estimated 1 million customers and other investors facing total losses in the billions of dollars.
What seems to have happened is a lot like an old-fashioned bank run where too many depositors wanted their money back at the same time, exhausting the cash reserves of the company. But in the case of actual banks, they are regulated by the government and there are systems in place to assist individual banks weather such runs and protect depositors. In the unregulated crypto-world where they prided themselves on being independent of government entanglements, there are no such safeguards
The company has filed for bankruptcy and Sam Bankman-Fried, the founder of FTX, has ben pushed out of the company and is now in the Bahamas.
The collapse of FTX has given a new lease of life for the ad the company aired during the last Super Bowl featuring Larry David.