Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Friday, Mar 29, 2024

FTX creditors list includes Hong Kong regulators, 50 other local entities

FTX creditors list includes Hong Kong regulators, 50 other local entities

The broad list does not mean named institutions are necessarily creditors, lawyers say, and the connection to the crypto exchange is unclear.

A broad list of potential creditors to collapsed cryptocurrency exchange FTX includes more than 50 Hong Kong entities, with two government bodies that regulate virtual assets, in a display of the one-time crypto giant’s extensive reach.

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) are included in a 115-page list – spanning more than 7,500 rows of parties, including many redacted names – filed to the Delaware bankruptcy court on Wednesday. At least 50 other Hong Kong entities were also listed.

The precise relationship between the listed institutions on the “Verified Creditor Matrix” and FTX is unclear, as is whether any money is owed. In a separate statement filed with the court on Wednesday, lawyers said the list “is intended to be very broad for service purposes and includes parties who may appear in the Debtors books and records for any number of reasons”.

A name on the list “does not necessarily indicate that the party is a creditor of any of the Debtors”.

“We note that the list is compiled by a US financial advisory firm and it contains a few thousand names including many regulatory bodies and public authorities in various jurisdictions,” an HKMA spokesman said.

“We are not in a position to comment on the rationale for including the HKMA on the list.”


FTX founder Sam Bankman-Fried speaking remotely at Hong Kong FinTech Week on October 31, 2022. In December, a month after FTX declared bankruptcy, Bankman-Fried was arrested in the Bahamas and later extradited to the US.

In November, Eddie Yue Wai-man, the CEO of HKMA, said during a presentation of results for the government’s Exchange Fund that the fund does not invest in cryptocurrencies.

Regulators that month also downplayed the potential impact in Hong Kong of FTX’s bankruptcy, saying any fund managers’ exposure appeared to be “immaterial”.

The SFC did not respond to a request for comment.

The creditor list includes a wide swathe of institutions, from US and international securities regulators to media organisations like Bloomberg, The New York Times and The Wall Street Journal. Goldman Sachs, one of multiple international banks named, told Bloomberg News that it is not an FTX creditor.

FTX owes its 50 biggest creditors more than US$3.1 billion, including US$1.45 billion to its top 10 creditors, according to a court filing in November. Creditors’ names were redacted.

Other Hong Kong entities named on the latest creditor list include workspace provider The Executive Centre, one of FTX’s offices when it was based in the city before leaving for the Bahamas, and several venture capital investors including Ausvic Capital and Chuang’s China Capital.

The two venture capital firms invested in the collapsed exchange, according to a court filing earlier this month that revealed FTX’s previously unknown equity holders.

The exposure of crypto-related businesses in Hong Kong, where FTX was founded before moving to the Bahamas, also came to light last year as they ran into financial trouble.

Genesis Block, a bitcoin ATM company that halted trading last month, is on the creditor list, as is Cottonwood Grove, a subsidiary of Alameda Research, FTX’s sister trading firm. Both companies shared the same address.

A Hong Kong subsidiary of Huobi Global, a crypto exchange founded in mainland China before leaving during an industry crackdown, is also on the list. Hbit Limited, a subsidiary of Huobi affiliate New Huo Technology, said in November it had US$18.1 million worth of cryptocurrencies deposited at FTX.

Atom Asset Exchange (AAX) is another now-defunct Hong Kong company on the list. The company’s troubles started soon after the FTX bankruptcy, freezing withdrawals at the end of November. Last month, Hong Kong police arrested two men in connection with the company over an alleged US$30 million fraud.

BC Technology Group made the list, as well. The company is known for OSL, which became Hong Kong’s first licensed virtual asset trading platform for professional investors in December 2020. OSL said this month that it was planning to reduce operating expenses by about 33 per cent “in response to current market conditions”.

Some companies with business dealings with FTX are not on the list. This includes Blue Pool Capital, which participated in two of FTX’s fundraising rounds, according to a court filing.

The company has been increasing its presence in the cryptocurrency and Web3 space. It is the family office of Joe Tsai, chairman of the South China Morning Post and co-founder of Alibaba Group Holding, owner of the Post.

FTX’s collapse dealt a devastating blow to Hong Kong’s crypto community just after the government at the end of October made a high-profile pledge to boost its virtual asset industry.

The government unveiled a range of policy measures including allowing retail participation with licensed exchanges under a new scheme and allowing exchange-traded funds with exposure to bitcoin futures.

Less than two weeks later, FTX declared bankruptcy.
Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×