Newly sealed bankruptcy documents reveal thousands of creditors to whom FTX owes money after the once-powerful cryptocurrency exchange collapsed in November.
Wall Street heavyweights, including Goldman Sachs and JP Morgan, were named in a 116-page document filed late Wednesday on a list of creditors that includes corporations, charities, individuals and other entities.FTX is currently at the center of a large fraud investigation.
The list of creditors also includes media companies such as The New York Times and The Wall Street Journal, commercial airlines such as American Airlines, United Airlines, Southwest Airlines and Spirit Airlines, and major tech companies such as Netflix, Apple and Meta. is included.
In a statement, Goldman Sachs said it had no claims against FTX.
A bank spokesperson said, “This type of creditor matrix is prepared by debtors for the purpose of notifying interested parties in bankruptcy proceedings and is not necessarily evidence of creditor relationships.”
The document does not disclose the amount or nature of the debt, and the names of individual creditors (primarily customers who have deposited funds with FTX) have been redacted at FTX’s request. Being on the creditors list does not necessarily mean that the party had her FTX account.
FTX is believed to have over 1 million creditors, of which the top 50 have a combined debt of over $3 billion.
The crypto platform was once one of the most popular crypto exchanges on the planet, backed by celebrity endorsements and notable partnerships with sports teams. It marketed itself as a beginner-friendly crypto platform, allowing customers to deposit fiat currency and exchange it for digital assets. However, FTX unraveled in November as speculation about its balance sheet sparked investor panic. In the midst of a liquidity crisis, the company filed for bankruptcy and customers were at a loss.
Federal prosecutors investigating FTX have accused its founder and former CEO Sam Bankman-Fried of stealing client funds to cover the losses of his hedge fund, Alameda Research. He said he planned fraud. They also accuse him of using the money he stole to buy luxury real estate and contribute to political campaigns in the United States.
Bankman-Fried, who was indicted in December and is under house arrest at his parents’ home in California, pleaded not guilty to eight counts earlier this month. It is scheduled to go to court in October.
Two of his former business partners have pleaded guilty to fraud and collusion charges and are working with prosecutors for the Southern District of New York. Both associates implicated his Bankman-Fried in the alleged crimes.