MINING

Bitmain-Backed Crypto Mining Company Among Creditors Of Sam Bankman-Fried’s FTX

Singapore-based Bitfufu, backed by Chinese mining rig giant Bitmain, has filed claims for $11.7 million against crypto exchange FTX, which has revealed it owes more than $3 billion to its largest creditors as its bankruptcy process gets under way.

The claims were submitted by Bitfufu’s subsidiary Ethereal Tech last week, according to Kroll, a U.S. restructuring administration firm appointed by FTX. The company is among 13 unsecured creditors that has so far handed in claims against the collapsed crypto empire founded by former billionaire Sam Bankman-Fried.

Bitfufu was established in 2020 with investment from Bitmain, founded by crypto pioneer Jihan Wu, and is led by former members of the company. The startup, which offers services including sales, rental and hosting of bitcoin mining machines, announced in January that it is merging with a special purpose acquisition company to go public in the U.S. at a valuation of $1.5 billion.

Bitfufu did not immediately respond to a request for comment.

MORE FROM FORBESThe Fall Of FTX

A bankruptcy court filing late Saturday shows that FTX owes its 50 largest unsecured creditors about $3.1 billion; the filing didn’t name the creditors. FTX previously revealed in separate filings that it could have more than 1 million creditors across its various entities.

FTX and its affiliates filed for U.S. bankruptcy protection on November 11 in one of the biggest blowups in the cryptocurrency industry. John J. Ray, the company’s newly appointed CEO who had presided over the Enron bankruptcy, said in filings he had never seen “such a complete failure of corporate controls and such a complete absence of trustworthy financial information.”

The failed crypto exchange said on Saturday it has started a review of its global assets and is preparing for sale or reorganization of certain businesses. A court hearing of FTX before a U.S. bankruptcy judge has been set for Tuesday.


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Traciwininger
Author: Traciwininger

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