Bankrupt cryptocurrency firm FTX, whose former CEO Sam Bankman Fried spent nearly $40 million to help Democrats in this year’s midterm elections, now owes its creditors at least $3 billion.
The firm, which was once valued at $32 billion, filed for bankruptcy on Nov. 11, leaving a total of $3.1 billion owed to its top 50 creditors, the Washington Post reports…
Cofounder and former CEO Sam Bankman-Fried, who resigned when FTX filed for bankruptcy, and other FTX executives gave a total of $300,351 to nine members of the House Financial Services Committee. The largest donations went to Democrats working on regulating the crypto industry, the Washington Free Beacon found. Earlier this year, Bankman-Fried pledged $1 billion to Democratic campaigns in the 2022 midterm election. Now the crypto scion has lost all of his $16 billion net worth.
In the court filing, FTX listed one million potential creditors. Ray said the company is seeking sales and other forms of capitalization to ensure that its creditors get their money, but the process may prove difficult as Ray found serious inadequacies in FTX’s record-keeping.
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