Lawyers for FTX said during the crypto exchange’s bankruptcy hearing that they expect “millions” of creditors. A week ago, FTX said in a filing there could be more than 1 million creditors, up from an estimate of over 100,000 a week before that. FTX wants to keep their identities redacted, saying they represent a valuable asset. Loading Something is loading.
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Lawyers for FTX said during the crypto exchange’s first bankruptcy hearing Tuesday that they expect “millions” of creditors, signaling that its collapse has a much wider scope than initially thought.
A week ago, FTX said in a filing there could be more than 1 million creditors, up from an estimate of over 100,000 a week before that.
Over the weekend, FTX filed a list of its 50 largest creditors with the names redacted. On Tuesday in bankruptcy court in Delaware, FTX lawyers argued that the identities of creditors shouldn’t become public yet, saying they represent a valuable asset as other companies could poach them.
Judge John T. Dorsey of Delaware agreed to keep private the names of FTX’s top 50 creditors for now, but said he will revisit the issue of redactions at a subsequent hearing.
FTX filed for bankruptcy earlier this month while Sam Bankman-Fried stepped down as chief executive amid allegations of mishandling client funds.
Meanwhile, other new details emerged during the bankruptcy hearing Tuesday, such as FTX’s use of 36 banks and over 200 bank accounts.
Lawyers also said they reached an agreement to move a Chapter 15 bankruptcy case filed by Bahamian liquidators to Delaware from New York.