The FTX cryptocurrency exchange debacle continues to shake the crypto space.
Players are trying to figure out where the contagion will reach next because FTX and its founder, Sam Bankman-Fried, were central players in the industry. The company filed for bankruptcy on Nov. 11 after running out of cash to meet the demands of its customers and investors.
In recent court documents, FTX said that 50 of its top creditors are claiming more than $3 billion from it. The exchange owes about $1.45 billion to its top 10 creditors, according to a Nov. 19 filing with the U.S. Bankruptcy Court for the District of Delaware.
None of the creditors was named, but the largest claim is $226 million, followed by $203 million and $174 million. The fourth and fifth claims were $159 million and $130 million.
Hacker(s) Are Transferring Funds
New CEO John Ray, in charge of restructuring, has also announced the start of a strategic review of the assets, intended to liquidate them.
While waiting to see what other cryptocurrency companies are affected by FTX’s collapse, players on Nov. 21 were focused on the movement of stolen funds from FTX the day it filed for bankruptcy.
Indeed, nearly $663 million had been drained from FTX on Nov. 11, according to blockchain security firms. The company had confirmed the theft but never provided the amount.
Part of this money had been invested in ether, the second largest cryptocurrency in terms of market value. The FTX hacker(s) had thus become among the largest holders of ether.
The funds are on the move again and are now going into bitcoin, according to security firm Chainalysis. This means that the hacker or hackers are investing in bitcoin.
“Funds stolen from FTX are on the move and exchanges should be on high alert to freeze them if the hacker attempts to cash out,” Chainalysis warned on Nov. 20. “Reports that the funds stolen from FTX were actually sent to the Securities Commission of The Bahamas are incorrect. Some funds were stolen, and other…
