Admin Source : Gadgets 360
Crypto analytics firm Chainalysis has disclosed that FTX owes it money in connection with the bankruptcy proceedings for the beleaguered cryptocurrency exchange. Chainalysis was listed as a creditor in filings submitted to the Delaware bankruptcy court on Wednesday, and it requested that any pertinent records be delivered to its attorneys. The partnership between the blockchain analysis company and FTX dates back at least to 2019 when they collaborated to update the exchange’s anti-money laundering (AML) and know-your-customer (KYC) procedures.
FTX founder Sam Bankman-Fried, who resigned as the company’s CEO when it filed for Chapter 11 bankruptcy last week, revealed a partnership with Chainalysis in September 2019. While it remains unclear how much Chainalysis is owed by FTX, a day before FTX declared bankruptcy, Chainalysis shared on-chain data in a series of tweets to make sense of the impact of FTX’s implosion.
2/ Overall, while other firms may face insolvency, many market fundamentals remain stable. Reporting suggests the FTX situation stems from financial fraud rather than a blockchain or crypto-specific failure.
— Chainalysis (@chainalysis) November 16, 2022
“There’s no sugarcoating it: The potential collapse of an industry stalwart like FTX is bad for crypto, and the market reflects that,” the company said in a November 10 tweet. “But the industry has survived events like this before and emerged stronger. We know it will again.”
FTX has stated there may be more than a million persons having claims in the case but is expecting to release a list of its “Top 50” creditors by the end of this week.
A few companies have already disclosed their own involvement with FTX, whether it be in the form of loans, investments on one of its platforms, or holdings of the FTT token.
According to Binance CEO Changpeng Zhao, his company still possesses a substantial stock of FTT tokens. Similarly, BlockFi, a prominent cryptocurrency lender, said this week that it has “substantial exposure” to FTX and that it is considering filing for bankruptcy and making layoffs.
Meanwhile, in a statement submitted to the bankruptcy court in Delaware, new FTX CEO John J. Ray III disclosed that bankrupt firm Alameda Research owes a total of $4.1 billion (roughly Rs. 33,300 crore) from various parties.
Euclid Way, one of the companies under FTX’s bankruptcy filing, lent $2.3 billion (roughly Rs. 18,700 crore) to Paper Bird.
Additionally, Alameda Research lent $1 billion (roughly Rs. 8,118 crore) to FTX founder Sam Bankman-Fried, $543 million (roughly Rs. 4,408 crore) to FTX’s Director of Engineering Nishad Singh and $55 million (roughly Rs. 446 crore) to FTX co-CEO Ryan Salame.
