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The collapse of Sam Bankman-Fried’s crypto empire has sparked a vast global investigation, with dozens of authorities circling the company as lawyers warn there could be 1 million creditors in its bankruptcy proceeding.
FTX said in court filings it was in contact with US federal prosecutors, the Securities and Exchange Commission, the Commodity Futures Trading Commission, and “dozens of federal, state, and international regulatory agencies” in the three days since the cryptocurrency exchange and more than 100 affiliated companies filed for Chapter 11 bankruptcy in Delaware.
The companies face at least 100,000 creditors, but that number could expand to more than 1 million, according to the filing. Most of the creditors were clients of Sam Bankman-Fried’s companies.
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