January 11, 2023

FTX Recovers Cash, Liquid Crypto Worth $5 Bln

FTX

FTX

The troubled crypto exchange FTX has recovered $5 billion in cash and liquid cryptocurrencies, which could be used to repay customers and investors after being sold, FTX attorney Andy Dietderich said.

Speaking to a Delaware bankruptcy court on Wednesday, Dietderich noted that the exchange is still working to rebuild transaction history. These recovered assets are not included in the assets, which the Securities Commission of the Bahamas announced to seize FTX-connected assets, worth around $450 million, as part of their ongoing prosecution of FTX co-founder Sam Bankman-Fried.

Dietderich also mentioned that FTX eyes selling non-strategic investments worth $4.6 billion, like FTX Japan, FTX Europe, LedgerX, and Embed. These companies are independent of FTX with separate accounts. Presiding judge John Dorsey granted FTX’s request to sell related businesses like FTX Europe. Dietderich pointed out that there is no sale reached yet and the company is still exploring bids.

For his part, FTX attorney Adam Landis told the court that the recovered $5 billion does not include illiquid cryptocurrencies, mentioning that the company’s holdings are so big and selling them would negatively affect the crypto market.

Earlier, FTX’s current CEO John J. Ray said at least $8 billion of customer assets were unaccounted for in the “worst” case of corporate control he’d ever seen, according to CNBC.

In December, Bank-man Fried  was arrested in the Bahamas at the request of the US government. SBF, 30, faces criminal charges related to the bankruptcy of the crypto platform in November. He faces charges of money laundering, wire fraud, wire fraud conspiracy, securities fraud, and securities fraud conspiracy.

Tags :
Author profile

Whether you want to learn about NFT, Blockchain, Web3.0, Metaverse, or any other emerging technologies, we have the vital resources that will enlighten and help you make an informed decision.