Late on Monday, FTX filed more than 100 dockets for various companies related to the exchange — including Alameda Research, West Realm Shires, Clifton Bay Investments, and many more — that will be going through a bankruptcy process. As the number of companies was too large, FTX also filed a motion to group all the entities and jointly administer them under the FTX group umbrella, as opposed to individualizing them on a case-by-case basis.
The fallen exchange — which on Friday said it had between $10 and $50 billion in assets and liabilities, and over 100,000 creditors — further proposed that instead of creating a list of the top 20 creditors for each individual company, it can instead create a consolidated list of the top 50 creditors. The Monday filing also revealed that the total number of creditors of the entire FTX Group could number more than 1 million. The document reads:
“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. As such, the Debtors submit that cause exists to modify that requirement such that the Debtors will file a consolidated list of their top 50 creditors.”
The FTX team also requested to be allowed to serve all the bankruptcy notices to creditors through email instead to their residences, noting that its customers interacted with the exchange mainly online, and that their emails were already in the system. Surprisingly, the filing also mentioned the hack on Friday, claiming that FTX has since contacted the U.S. Attorney’s Office, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission among others.
On 11 November, over $600 million were transferred out of the insolvent crypto exchange in a number of suspicious transactions. Out of all the transactions it appears that one hacker — who is suspected to be an insider — withdrew close to $350 million worth of tokens to his own wallets, and later used various DEX’s — such as Uniswap, 1inch, Cowswap, and others — to try and dump his stolen tokens. Crypto intelligence platform Arkham Intelligence noted that the attacker is not very sophisticated, and appears to be in a panic based on his blockchain transactions. One of his biggest mistakes was to use his verified Kraken account to send enough TRX tokens to cover his transaction fees, with the exchange’s CSO noting that they were aware of the user’s identity.