A Failing FTX Owes Nearly More Than $3 Billion To Top 50 Investors – SlashGear

The failed crypto exchange’s top 50 investors are allegedly owed $3.1 billion, with the top 10 being owed around $1.45 billion of that. Fortune says that the affected customers have not been named, but the amounts have been confirmed in documents filed in court over the weekend. The papers go on to break things down further. One individual, who is the company’s biggest creditor, is owed $226 million, and 10 customers had at least $100 million each lodged with the firm. The smallest claim on the list of 50 is still $21 million.

Saturday’s filing only lists the top 50 creditors, but that is just a fraction of the people who have money tied up in FTX. Some estimates put the number of creditors the exchange owes money to at over a million. Those creditors will have the opportunity to get involved with the bankruptcy proceedings and suggest how they would like to recoup their money — but there are no guarantees it will be paid back. A large portion of the creditors are the firm’s customers, and their debt tends to be unsecured, which is a term used when money is lent without collateral being taken.

With secured debt, like the kind you would get from a bank, the borrower usually has to offer some kind of collateral that acts as an insurance policy should they lapse on the payments. On a personal level, this would be like securing a loan against your house or car. FTX customers don’t have that luxury, so may only receive some or even none of their investment back, depending on how much FTX still has in assets.