Global investigators pounce as FTX collapse leaves up to 1 million creditors

Dozens of authorities around the world are investigating the collapse of Sam Bankman-Fried's company as lawyers warn there could be 1 million victims.

US federal prosecutors, the Securities and Exchange Commission, the Commodity Futures Trading Commission, and dozens of federal, state, and international regulatory agencies were in contact with FTX in the three days following the filing of Chapter 11.

According to the filing, the companies face at least 100,000 creditor, but that number could grow to more than one million. Sam Bankman-Fried's companies were the majority of the creditor.

Regulatory authorities around the world are interested in these events.

The statements show the scale and complexity of Bankman-Fried's digital asset group, as well as the intense legal and regulatory scrutiny of his businesses.

The events that have taken place over the past week are unprecedented. FTX, led by its co- founder Sam Bankman-Fried, was considered to be one of the most respected and innovative companies in the industry.

After late-night meetings with his lawyers, Bankman- Fried agreed to step down as CEO at 4.30 am on Friday.

John Ray is a restructuring specialist who has worked on companies such as Enron. After lawyer Stephen Neal backed out of a board position, five independent directors were appointed to oversee the companies.

The US filing came after financial regulators in the Bahamas appointed liquidators to run a key FTX entity as the country's authorities seek to "protect the interests of clients, creditor, and other stakeholders globally."

Bankman-Fried lived in the Caribbean nation where FTX used its Nassau base to build a business that accepted money from thousands of customers around the world.

FTX was the victim of a cyber attack. $487 million was stolen in a hack of the exchange, according to Elliptic.

FTX hired investigative, forensic, and cyber security experts to work with lawyers from Sullivan & Cromwell, FTX's long-time legal counsel, which has been advising the company on the bankruptcy process.

The financial advisers have been hired. A team from the advisory firm was on the ground helping with the preparation of the disclosure of the company's finances.

According to a person familiar with the matter, the US Securities and Exchange Commission has recently widened its investigation into FTX, which includes a probe of the company's management of customer funds.

FTX stated in the filing that it needed to reorganize or sell its assets for the benefit of its stakeholders.

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