Goldman Sachs: We Are Not an FTX Creditor

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Doc­u­ments filed Wednes­day in Delaware’s US Bank­rupt­cy Court list thou­sands of poten­tial FTX cred­i­tors, though lawyers said the names with­in the doc­u­ments are not nec­es­sar­i­ly sig­nif­i­cant­ly tied to the company.

One large bank in par­tic­u­lar is look­ing to dis­tance itself from the exchange. 

The 116-page fil­ing, called “Ver­i­fi­ca­tion of Cred­i­tor Matrix” includes the names of Gold­man Sachs, JPMor­gan Chase, HSBC, BNY Mel­lon, and oth­er house­hold names in finan­cial services. 

It also com­pris­es a num­ber of cryp­to firms, air­lines, some of the world’s largest tech firms — even media companies.

While indus­try watch­ers and large media out­lets are anx­ious to find out the enti­ties to which  FTX owes mon­ey, the doc­u­ment filed Wednes­day does not say much, lawyers said. 

A Gold­man Sachs spokesper­son told Block­works in an email the bank is not an FTX creditor. 

“This type of cred­i­tor matrix is pre­pared by the debtors for the pur­pose of pro­vid­ing notice to inter­est­ed par­ties in a bank­rupt­cy pro­ceed­ing and is not nec­es­sar­i­ly evi­dence of a cred­i­tor rela­tion­ship,” the rep­re­sen­ta­tive added.

A spokesper­son for JPMor­gan Chase declined to comment. 

HSBC and BNY Mel­lon did not imme­di­ate­ly return requests for comment. 

Dov Klein­er, a part­ner at law firm Klein­berg Kaplan, said the cred­i­tor matrix is gen­er­al­ly pulled from the debtor’s books and records and can include lots of dif­fer­ent parties. 

A cred­i­tor matrix includes lend­ing coun­ter­par­ties and account hold­ers, as well as all oth­er known cred­i­tors. But some of the com­pa­nies and enti­ties list­ed could be ven­dors or land­lords who have already been paid, or known lit­i­ga­tion parties.

“The idea is to include any­one who might have a claim so that the notice of the fil­ing is as broad as pos­si­ble,” Klein­er added. “Ulti­mate­ly, the debtors are look­ing to have their claims resolved final­ly in the bank­rupt­cy, so they will want to cov­er every­one they can.” 

A pro­fes­sion­al who rep­re­sents debtors, who spoke under the con­di­tion of anonymi­ty, added that the debtor — as part of a cred­i­tor matrix — offers a list of every­one it did any busi­ness with over the last sev­er­al years.

“It could be any­thing,” the per­son said. “It is not nec­es­sar­i­ly mean­ing­ful that a par­tic­u­lar enti­ty is on the list.” 

Klein­er said it is under­stand­able why a cred­i­tor matrix is giv­en more atten­tion in a high-pro­file case like this.

FTX filed for Chap­ter 11 bank­rupt­cy in the Dis­trict Court of Delaware in Novem­ber. The com­pa­ny crashed after a $6 bil­lion bank run fueled by rumors of insol­ven­cy and alle­ga­tions of com­min­gling user funds with sis­ter trad­ing firm Alame­da Research.

Cryp­to com­pa­nies have strug­gled from rip­ple effects, as Block­Fi filed for bank­rupt­cy a few weeks after FTX after sus­pend­ing with­drawals amid the FTX developments. 

Lawyers rep­re­sent­ing FTX and affil­i­ates said in a bank­rupt­cy motion in Novem­ber that as many as one mil­lion cred­i­tors could be named in the suit. A Delaware bank­rupt­cy judge said ear­li­er this month a list of those cred­i­tors could remain sealed for now. 

What will be more telling than the cred­i­tor matrix, Klein­er said, will be when par­ties begin fil­ing proofs of claim and when FTX, sub­se­quent­ly, pro­vides a claims estimate.

“Gold­man [Sachs] is just try­ing to reas­sure peo­ple that the fact that it shows up on the FTX cred­i­tor matrix does not mean that Goldman’s bal­ance sheet is exposed to FTX loss­es,” he said.


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