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FTX, the renowned cryptocurrency exchange, has been under a lot of heat for the past few weeks.

According to documents filed Saturday in Delaware bankruptcy court, FTX owes $3.1 billion to its top 50 creditors.

The document clarifies the extent of potential client losses.

The filing

According to Saturday’s filing, the crypto exchange’s top 10 creditors have more than $100 million in unsecured claims each.

The claims amount to more than $1.45 billion.

The filing explained that the debt does not include any liabilities to company insiders.

However, this may change with additional information.

FTX owes its largest creditor more than $276 million.

In addition, the company now owes about $21 million to its 50th creditor.

Despite the massive debt, the filing can only scratch the surface of what the company owes.

Last week, FTX said it might have more than a million creditors.

The company also owes its third-largest creditor $174 million.

While unconfirmed, the figure is consistent with what cryptocurrency lender Genisis announced ten days ago: $175 million in funds locked in its FTX trading account.

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Filing notice

A notice accompanying the filing explains that FTX based the totals on information that was visible but not accessible.

The notice claims that the company did not have full access to customer data.

FTX, led by new CEO John J. Ray III, said in the filing that the debt numbers might be inaccurate.

Payments to creditors may need to be reflected in the company’s books or records.

Creditors

A request was made to withhold information about FTX’s creditors and their personal information.

Additionally, the motion states that disclosing the names of creditors could give predatory companies a head start.

It reads:

“Public dissemination of the Debtors’ customer list could give the competitors an unfair advantage to contact and poach those customers, and would interfere with the Debtors’ ability to sell their assets and maximize value for their estates at the appropriate time.”

“The Debtors historically did not keep appropriate books and records,” it continued.

“[And] the Debtors are currently working to access certain sources of data and records that are currently unavailable.”

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Chapter 11 cases

The decision to create an FTX creditor list came from overlapping creditors in Chapter 11 cases, disorganized filing, and limited time and resources.

“Creditor information, and in particular customer information, is not clearly labeled or identifiable by [FTX],” the motion reads.

“As a result, presenting the information on a consolidated basis will ensure the most relevant and known information can be promptly disclosed.”

A date for the “first day of hearings” in FTX’s bankruptcy proceedings has been set.

As a result, it will take place on Tuesday in Wilmington, Delaware.

Reference:

FTX says it owes over $3 billion to its 50 largest creditors