According to documents filed in bankruptcy court on Monday, the collapsed FTX and its related businesses could owe money to more than a million people.
Lawyers for FTX gave few details about the state of the business in their first substantive court filing. The Securities and Exchange Commission, the Justice Department and the Commodity Futures Trading Commission are just a few of the regulators FTX was in touch with.
FTX had an $8 billion shortfall due to a run on deposits. A company that was once considered to be one of the safest and most reliable corners of the freewheelingcryptocurrencies industry collapsed almost overnight.
Sam Bankman-Fried, the firm's founder and chief executive, resigned when the bankruptcy papers were filed. After consulting with his own legal team, Mr. Bankman- Fried agreed to step aside at 4:30 a.m.
John J. Ray III was in charge. Mr. Ray and other FTX officials have been working around the clock to get the company in order. A cyber attack was reported late on Friday night and the firm stopped trading.
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