AWS, Microsoft, Google Among Businesses Owed Money After FTX Collapse

AWS, Google and Microsoft are among creditors owed money after the FTX crypto exchange filed for bankruptcy in November. From a report: Since the once-hyped company went south, founder and former CEO Sam Bankman-Fried was arrested in the Bahamas in December, with charges including campaign finance violations and money laundering offences. He has maintained his innocence. In the meantime, Judge John Dorsey, overseeing the case, said names of creditors owed money should not be published until after a hearing in early January. Although names of individual investors have not been released, companies and institutional investors have been published.

Among them are a long list of enterprise tech companies presumably providing FTX's supporting technology. Cloud providers AWS, Microsoft and Google are among them. Data analytics platform Looker -- owned by Google -- is also on the list, as is marketing software HubSpot, file-sharing outfit Dropbox, and code repository GitHub. Device manufacturer Apple and webhosting firm GoDaddy are also named. It is impossible to say how much each company might be owed, although FTX has said $3.1 billion was outstanding to its top 50 creditors. Estimates suggest there are in the region of 1 million creditors, with the greatest two single claims being $226 million and $203 million.

Crytpo Speculation Led to Tech Layoffs?

[XopherMV]

I'd like to know exactly how much these tech companies speculated in crypto and whether those financial losses contributed to the tech layoffs. Given that one happened right after the other, the timing looks suspicious. Amazon, Microsoft, and Google all announced layoffs at damn near the exact same time, right around the time FTX failed. Normally, getting the tech giants to do the same thing at the same time is damn near impossible.

Re:Crytpo Speculation Led to Tech Layoffs?

[iAmWaySmarterThanYou]

These are infrastructure cloud bills not direct investment in the FTX crypto scam.

All you need is an Amex and you can rack up millions in AWS bills without ever talking to an AWS rep or signing a real contract.

Re:

[stripes]

When companies buy stuff from each other they don't pay cash they pay in IOU's which typically state when they will pay, for example in say 90 days ("net90"), or 30 days ("net30"), or various other "not now, not at the end of the month, but sometime soon, maybe this year,I promise!". I think net30 is pretty common, net15 is rare, and sooner than 15 days is very uncommon (except for small companies that only accept "cash on the barrelhead").

So FTX owning Amazon say $206 million is far more likely to be th

Re: Crytpo Speculation Led to Tech Layoffs?

[dowhileor]

Just a drop on the bucket. We will never know how much they themselves owe due to crypto speculation and by they I mean all companies who dared.... good job everyone...!

Re:

[account_deleted]

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Not exactly news

[dain-ger-will-rob-in-sun]

Three of the largest tech infrastructure service providers (AWS, Microsoft, Google) are owed money by a bankrupt tech company. Yawn.

Sounds like Twitter after Musk

[smooth wombat]

The great Elon Musk thought it would be a grand idea to save money by not paying Twitter's rent. Now he's facing multiple lawsuits [marketwatch.com] from the landlords which will cost him more to defend than if he paid the rent. And he still owes the rent.

Never get in bed with narcissists or sociopaths because the dildo of consequences rarely arrives lubed.

Re:

[iAmWaySmarterThanYou]

Is the dildo of consequences a new magic item for 5e? I've mostly played 2e so not familiar with some of the new material.

Re:

[stripes]

If Musk owes enough to those landlords that they're more desperate than he is, he may still find a settlement that's favorable for him.

Alternately if Twitter goes bankrupt it will almost certainly pay under 100 pennies on the dollar of all that back rent.

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[account_deleted]

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Re: Trump's business model too.

[dowhileor]

Yet just walking away would have cost him about 1/200th of what it is going to cost now and 2 years out for starters? Nobody can say they did not see this coming so what was the plan? Politicians should have kept their mouths shut and let spike Lee and friends buy twitter. Or Disney. It would no worse off....

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[account_deleted]

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Re: Trump's business model too.

[dowhileor]

I'm saying from my perspective he planned to fail and I see no other strategy.

Re:

[HiThere]

I find your references unintelligible. So does Google unless you're talking about apparel.

for services rendered only, I hope?

[roman_mir]

I would be very disappointed with these companies if any of the money owed to them was for anything but services rendered to FTX and not for any crypto purchases.. I mean these companies should be business savvy.

Re:

[UnknowingFool]

Reading the summary makes it seem that they would be normal transactions for any company bankruptcy especially a tech company. For example, FTX probably bought Apple hardware and had not paid them in full; they signed a yearly contract with AWS and owe them for the remainder of the contract, etc.

Pocket money

[real_nickname]

These million dollar are just pocket money for them.