Among those affected by the collapse of the “crypto” business are celebrities such as American football player Tom Brady
The fall of the FTX cryptocurrency platform will leave a much larger number of affected people than initially expected. The company, which confirmed its bankruptcy last Friday, has increased the size of the abyss beyond the 100,000 creditors initially quantified. This Tuesday, he acknowledged that the total number of those affected would be about one million people. Among them are celebrities such as American football star Tom Brady or tennis player Naomi Osaka.
The company’s bankruptcy filing implies that the managers will first have to attempt a restructuring to try and return the money to those affected, be they creditors or customers. But the fact that the figure has risen so much makes it very difficult to achieve this return. Especially since deposits are not guaranteed, unlike what happens with traditional banks.
According to a court document sent to the U.S. government on Tuesday, John Ray appears as the company’s new CEO, indicating that following his appointment, he “has begun working with FTX advisors to manage clients’ assets.” and secure debtors around the world.
Currently, US bankruptcy law requires disclosure of the company’s 20 largest creditors in such cases. However, it is rumored that current FTX executives would be willing to make a larger list of the first 50 affected public.
The company filed for bankruptcy last week after being valued at $32 billion. The same updated court documents, seen by Reuters, warn that the company suffered a cyberattack on Nov. 11, after reporting on Saturday that it had seen “unauthorized transactions” on its platform.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
