Analytics Firm Chainalysis Among FTX's Long List of Creditors, Reveals Court Filing

FTX is expected to publish a list of its “Top 50” creditors by the end of this week.

Chainalysis, a crypto analytics company, has revealed that FTX owes them money in connection with the troubled cryptocurrency exchange's bankruptcy proceedings. In documents presented to the Delaware bankruptcy court on Wednesday, Chainalysis was designated as a creditor and asked that all relevant documents be sent to its lawyers. The collaboration between the blockchain analysis company and FTX goes back at least to 2019, when they worked together to modernise the exchange's know-your-customer (KYC) and anti-money laundering (AML) policies.

Sam Bankman-Fried, the founder of FTX and former CEO of the organisation before it filed for Chapter 11 bankruptcy this week, disclosed a cooperation with Chainalysis in September 2019. Although it's unknown how much money FTX owes Chainalysis, the day before FTX filed for bankruptcy, Chainalysis shared on-chain data in a series of tweets to make sense of the impact of FTX's implosion.

The business stated in a tweet on November 10 that "there's no sugarcoating it: The probable collapse of an industry veteran like FTX is awful for crypto, and the market reflects that." But similar incidents have happened in the past, and the sector always came out stronger. We are aware that it will.

The number of parties with claims in the case, according to FTX, may exceed a million, but the company plans to reveal a list of its "Top 50" creditors by the end of this week.

Several businesses have previously declared their own connections to FTX, including loans, investments on one of its platforms, and ownership of the FTT token.

The CEO of Binance, Changpeng Zhao, claims that his company still has a sizable supply of FTT tokens. Similar to this, a well-known cryptocurrency lender named BlockFi declared this week that it has "significant exposure" to FTX and that it is thinking about declaring bankruptcy and laying off employees.

New FTX CEO John J. Ray III revealed that the bankrupt company Alameda Research owes a total of $4.1 billion (approximately Rs. 33,300 crore) from different parties in a declaration presented to the bankruptcy court in Delaware.

One of the businesses included in FTX's bankruptcy case, Euclid Way, loaned Paper Bird $2.3 billion, or about Rs. 18,700 crore.

Sam Bankman-Fried, the creator of FTX, received a loan from Alameda Research for $1 billion (approximately Rs. 8,118 crore), and the Director of FTX received a loan for $543 million (about Rs. 4,408 crore) Engineering Nishad Singh and $55 million (roughly Rs. 446 crore) to FTX co-CEO Ryan Salame.

"The 2022 DPDP Bill has eliminated numerous contentious elements that the business objected to in earlier draughts and simplified the planned data security system. In particular, compared to the prior Bill, data mirroring, data localization requirements, and overall compliance levels look to be constrained "commented Rupinder Malik, a partner at the legal firm JSA.

He claimed that the legislative goal seemed to be supportive of the IT and tech industries and centred on promoting cross-border data flows. "There is a chance that some features that have been softened will lessen the total protection provided to individual privacy rights. The Bill has been written in a simpler, clearer manner, which is a great development." The Data Protection Bill, which was withdrawn by the government in August of this year, has been replaced by the new draught legislation. The draft is open for public comment till December 17.

Additionally, Alameda Research loaned FTX co-CEO Ryan Salame $55 million (roughly Rs. 446 crore), FTX's director of engineering Nishad Singh $543 million (roughly Rs. 4,408 crore), and FTX founder Sam Bankman-Fried $1 billion (roughly Rs. 8,118 crore).