FTX creditors could be more than one million, bankruptcy filing shows

FTX may have more than 1 million creditors, a new court document in the crypto exchange’s bankruptcy case shows, ten times more than what the company said it had when it filed for Chapter 11 on Friday.

“As set forth in the Debtors’ petitions, there are over one hundred thousand creditors in these Chapter 11 cases. In fact, there could be more than one million creditors in these Chapter 11 Cases,” FTX legal counsel said in the document filed Tuesday.

The revelation underscores concerns among analysts and industry watchers over how wide and far FTX’s troubles could spread in the crypto industry.

“This is a huge black mark for the industry,” Devin Ryan, director of financial technology research with JMP Securities, told Yahoo Finance. “And there’s still a heck of a lot of uncertainty in terms of where we go from here, where the money trail goes.”

Since the FTX saga began over the past week, bitcoin has sold off by more than 14% from $19,717 to $16,847, while the total market capitalization for all crypto assets has fallen by 12% to $852 million, according to Coinmarketcap.

Representations of cryptocurrencies are seen in front of displayed FTX logo in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration

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