Cryptocurrency analysis firm Chainalysis has revealed that FTX owes it money in connection with the bankruptcy proceedings of the beleaguered cryptocurrency exchange. Chainalysis was listed as a creditor in filings with Delaware bankruptcy court on Wednesday, and requested that any relevant records be turned over to his attorneys. The partnership between the blockchain analysis firm 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-Fred, who stepped down as CEO of the company when it filed for Chapter 11 bankruptcy last week, has revealed a partnership with decomposition in September 2019. While it remains unclear how much FTX owed the day before FTX declared bankruptcyChainalysis shared the on-chain data in a series of tweets to understand the impact of FTX’s implosion.
2/ Overall, while other companies may face bankruptcy, many market fundamentals remain stable. Reports indicate that FTX’s stance stems from financial fraud rather than a blockchain or crypto-specific failure.
Chainalysis November 16, 2022
“There is no icing on it: the potential collapse of an industry powerhouse like FTX is bad for cryptocurrencies, and the market reflects that,” the company said in a November 10 tweet. But the industry has survived such events before and emerged stronger. We know it will happen again.”
FTX reported There may be more than a million people with claims in the case but they expect to release their “Top 50” list of creditors by the end of this week.
Some companies have already disclosed their own involvement in FTX, be it loans, investments on one of their platforms, or holdings of FTT tokens.
According to the CEO of Binance Changpeng Zhao, his company still holds a large stockpile of FTT tokens. Similarly, BlockFi, a prominent cryptocurrency lender, said this week that it has “significant exposure” to FTX and is considering filing for bankruptcy and layoffs.
while, in the current situation Filed in bankruptcy court in Delaware, FTX’s new CEO John J. Ray III claimed that the bankrupt Alameda Research owed a total of $4.1 billion (roughly Rs. 33,300 crores) from various parties.
Euclid Way, one of the companies subject to an FTX bankruptcy filing, has loaned $2.3 billion (roughly Rs. 18,700 crores) to Paper Bird.
In addition, Alameda Research has loaned $1 billion (approx Rs. 8,118 crores) to FTX founder Sam Bankman-Fried, $543 million (approx. Rs. 4,408 crores) to FTX Director of Engineering Nishad Singh and $55 million (approx Rs. 446 crore) for FTX co-CEO Ryan Salameh.