One million investors could lose money from FTX crypto collapse 


More than one million investors at risk of losing money from collapse of FTX cryptocurrency exchange

More than 1m investors could lose money after FTX collapsed.

Just over a week ago, the failed cryptocurrency exchange – founded by Sam Bankman-Fried – was valued at £27billion.

But it quickly imploded after experiencing a surge in withdrawals it was unable to fulfil.

Just over a week ago, failed cryptocurrency exchange FTX – founded by Sam Bankman-Fried (pictured) – was valued at £27bn

In a court filing as part of its Chapter 11 bankruptcy, lawyers for FTX said: ‘There are over 100,000 creditors in these Chapter 11 cases. In fact, there could be more than 1m creditors.’

The abnormally large amount of creditors is a result of FTX’s sprawling and complex structure. 

The company was made up of a web of companies with more than 130 registered entities and grew quickly to become the world’s second largest digital coin exchange.

Most of the creditors were clients of 30-year-old Bankman-Fried’s companies. The filing also reveals just how seriously law enforcement agencies are taking the collapse.

Dozens of authorities are circling the company – including the US Attorney’s Office, the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Bankman-Fried agreed to step down as chief executive last week. Restructuring specialist John Ray, known for his work on Enron, has taken over the company.

The court filing added: ‘Barely more than a week ago, FTX was regarded as one of the most respected and innovative companies in the crypto industry.’

Read more at DailyMail.co.uk