The total number of FTX creditors could reach one million!

The total number of creditors of FTX Derivatives Exchange, now in bankruptcy, could reach one million. The new figure was revealed in a new court document released Monday, further compounding the bankruptcy proceedings that many had already predicted would be so complicated to untangle.

When the company filed for bankruptcy last Friday, it said its liabilities were between $10 billion and $50 billion, noting that its assets were also in that range. At the time, the company said its creditors numbered about 100,000, before increasing that number in its latest filing.

“As noted in the debtors’ petitions, there are over one hundred thousand creditors in these chapter 11 cases” according to the document added Monday to the federal court database system. “In fact, there could be more than a million creditors.“

The collapse of FTX is best labeled as one of the sad wonders in today’s digital currency ecosystem. Just over a week ago, the company was one of the most valuable digital currency companies, but a few missteps by its founder and former CEO, Sam Bankman-Fried, have fueled a liquidity crisis, characterized by mass withdrawals from the platform.

FTX’s creditors will feel the brunt of the crisis across the board

The collapse of FTX has sent shockwaves through the industry and many will begin to feel the weight and consequences going forward. In addition to the more than 200 affiliates named in last week’s bankruptcy filing, many creditors are facing bankruptcy.

On Twitter, Travis Kling, founder of Ikigai Fund, a crypto-currency asset management firm, said that FTX’s implosion could be the last straw, as he has funds tied up in the company.

“Unfortunately, I have some pretty bad news to share. Last week, Ikigai was caught up in the collapse of FTX. We had a large majority of the hedge fund’s total assets in FTX. By the time we went to withdraw on Monday morning, we couldn’t withdraw much. We are now stuck like everyone else“, he shared in his tweet, adding that “Over the coming weeks and months, the timeline and potential recovery for FTX customers will become clearer. For now, it’s really hard to say. At some point, we will be able to better tell whether Ikigai will continue to operate or simply go into liquidation mode.“

Over the coming weeks and months, the timeline and potential recovery for FTX customers will become clearer. Right now, it’s really hard to say. At some point, we’ll be able to make a better call on whether Ikigai is going to keep going or just move into winddown mode.

– Travis Kling (@Travis_Kling) November 14, 2022

The extent of the devastation caused is not yet known and more details will be revealed in the coming weeks. For now, experts predict that the losses that will be suffered could be equivalent to those of the collapse of Terra (LUNA), Celsius Network and Voyager Digital on a comparative basis.