New York
CNN
—
Newly unsealed bankruptcy documents reveal that FTX is owed thousands of creditors after the once-mighty cryptocurrency exchange collapsed in November.
Wall Street heavyweights including Goldman Sachs and JPMorgan Chase & Co were added to a list of creditors, including businesses, charities, individuals and other entities, in a 116-page filing late Wednesday. FTX is now at the center of a massive 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 several large technology companies such as Netflix, Apple and Meta.
Goldman Sachs said in a statement that it has not filed a claim against FTX.
“This creditor matrix is prepared by debtors for the purpose of providing notice to interested parties in the insolvency proceedings and is not necessarily evidence of creditor relationships,” a spokesman for the bank said.
The filing did not disclose the amount or nature of the debt, and the names of individual creditors — primarily clients who deposited funds with FTX — were still redacted at FTX’s request. Being listed as a creditor does not necessarily mean that both parties have FTX accounts.
FTX is believed to have over 1 million creditors, with the top 50 creditors collectively owed over $3 billion.
The crypto platform was once one of the most popular crypto exchanges on the planet, fueled by celebrity endorsements and high-profile partnerships with sports teams. It positions itself as a beginner-friendly crypto platform that allows customers to deposit fiat currencies and trade them for digital assets. But FTX was disbanded in November as speculation over its balance sheet sparked investor panic. Amid a liquidity crisis, the company filed for bankruptcy, leaving customers stranded.
Federal prosecutors investigating FTX say its founder and former CEO, Sam Bankman-Fried, orchestrated a massive fraud by stealing client funds to cover losses at his hedge fund, Alameda Research. They also accused him of using the stolen money to buy luxury real estate and donate to US political campaigns.
Bankman-Fried, who was indicted in December and remains under house arrest at his parents’ California home, pleaded not guilty to eight criminal counts earlier this month. He has repeatedly denied committing fraud and is scheduled to appear in court in October.
Two of his former business partners have pleaded guilty to fraud and conspiracy and are cooperating with prosecutors in the Southern District of New York. Both accomplices implicated Bankman-Fried in the alleged crimes.