FTX: These are the 4 highlights of the bankruptcy process so far

This week the bankruptcy process of the Sam Bankman-Fried FTX exchange began in Delaware, which will probably mark the cryptocurrency market for some time. No one expected it to reach this point, mainly because FTX was now considered the benchmark capable of saving the cryptocurrency industry from the disasters that followed this year, with the token implosion and several major player bankruptcies.

When an $8 billion financial hole emerged in the accounts of the Bahamas-based company, even the most ardent cryptocurrency supporters began to have little faith in this world that travels without a shred of regulation. Meanwhile, the number of those willing to celebrate the requiem of the entire sector has increased. “It’s only a matter of time,” they argue. That is, the time it takes for the FTX contagion to spread and wipe out one lender, hedge fund and exchange after another, even among the most unsuspected until recently. At that point, crypto would be perhaps the biggest of the bubbles to deflate, given the incredible growth process over a few years.

FTX: This is what has come out of the process so far

The FTX audience has so far said a lot of interesting things, of which we were unaware and still do not fully understand. There are 4 salient facts that have emerged at this time. Mainly customer sites. The United Kingdom and China are the countries with the highest customer share, if tax havens are excluded. Among the latter, however, the Cayman Islands and the Virgin Islands stand out.

Second, the employees. So far, it is known that around 260 employees remained with the company at the end of October. Sam Bankman-Fried has asked to be able to pay staff with the remaining funds, but it doesn’t appear that the Delaware judge can grant that request.

FTX officially files for bankruptcy

Third, investors. Here we are faced with a problem, because the list could be very long. FTX creditors are estimated to number more than 1 million, with the top 50 reportedly boasting combined credit of more than $3 billion. Among those who have invested in the exchange over time are financial firms such as Sequoia Capital, BlackRock, and cryptocurrency firms Paradigm, Genesis, and BlockFi.

Finally, liquidity. So far it has been determined among all related companies worldwide that the cash balance would reach $1.24 billion, with Alamada having the largest cash reserve. This will serve in the coming weeks to continue operating under the strict control of the Court, while the rest have remained on hold under the direction of the new CEO John Ray.