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Cryptocurrency exchange FTX owes more than $3 billion to creditors

FTX, the cryptocurrency exchange that collapsed earlier this month and filed for bankruptcy protection, said in a court filing on Saturday that it owes its 50 largest creditors more than $3 billion.

The collapsed exchange’s top ten creditors are owed about $1.45 billion. The identities of the creditors are redacted.

John Ray III, who was appointed CEO of FTX after founder Sam Bankman-Fried resigned, also said Saturday that the company has launched a strategic review of the exchange’s assets.

FTX was once the world’s third-largest exchange with a valuation of nearly $32 billion before a liquidity crisis toppled the company earlier this month. Bankman-Fried announced on Nov. 11 before stepping down that FTX, his trading firm Alameda Research, and affiliated companies would file for bankrupty.

An estimated one million customers and other investors are facing losses in the billions of dollars.

Ray, an attorney who oversaw the $23 billion bankruptcy of energy firm Enron, wrote in a separate court filing this week that he did “not have confidence” in FTX’s balance sheets.

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Ray said in a filing on Nov. 17.

“From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”

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