FTX reported a $3.7 BILLION loss in its 2021 tax return. Also, its unsecured creditors are redacted in the company’s bankruptcy filing and they are owed an additional $3.1 BILLION. What’s going on?
FTX, the cryptocurrency exchange that went bankrupt only a few days ago, was in financial duress for some time. In the company’s bankruptcy filing, FTX mentions that it incurred a loss of $3.7 billion as recorded in its 2021 tax returns.
In addition, in the bankruptcy filing dated yesterday, the list of FTX creditors is redacted. This is a list of the 50 largest unsecured creditors. The largest five creditors are due nearly $1 billion ($226 million, $203 million, $174 million, $160 million, and $131 million). Who are they and why are they redacted?
The firm filed voluntary bankruptcy for its 102 subsidiaries as well.
The FTX collapse is leading to some very questionable and corrupt acts.
Hat tip Bob Bishop