The FTX cryptocurrency exchange, which has been in severe debt, has announced that it has recovered $5 billion in cash and liquid cryptocurrency.
According to a lawyer acquainted with the matter, the failing cryptocurrency exchange FTX is reported to have “recovered $5 billion in cash and liquid cryptocurrencies.” Despite this, the exchange is “making efforts to rebuild the transaction history.” This does not include the additional $425 million in cryptocurrencies owned by the Bahamas Securities Commission.
$5 Billion Is Recovered By FTX.
As previously reported, FTX’s total liabilities total $8.8 billion. The exchange was claimed to have limited cash and liquid digital assets at the time, which translated to a balance sheet gap of almost $8 billion, as per FTX’s newly appointed CEO John J. Ray III.
A U.S. bankruptcy judge in Delaware was informed by FTX’s lawyer, Andy Dietderich, at the beginning of the hearing on Wednesday that:
We have discovered liquid financial securities, liquid cryptocurrencies, and over $5 billion in cash, all evaluated at petition date value. Our holdings cannot be sold without impacting the token market because our holdings are so high in comparison to the overall supply.
The company’s financial statements have been criticized as being unreliable, but according to Dietderich, the company plans to dispose of $4.6 billion worth of non-strategic holdings.
On the other hand, when discussing assets confiscated by Bahamian authorities, the FTX attorney estimated the assets’ value to be as low as $170 million; in contrast to what the government body claimed to be as high as $3.5 billion. Dietderich claims that the FTT crypto token, which is owned by FTX proprietary and is illiquid and volatile in value, makes up the majority of the confiscated assets.
The FTX Scam
The company filed for bankruptcy in November, and in December U.S. prosecutors charged Sam Bankman-Fried with masterminding an “epic” fraud that could have cost investors, consumers, and lenders billions of dollars. Advisors and attorneys for the bankrupt company are currently working to recover money to pay creditors back.
Sam Bankman-Fried, the discredited founder of FTX, recently pleaded not guilty to all charges resulting from the exchange’s failures.
As a result of the collapse of the FTX exchange, an “FTX Task Force” has been formed by the Southern District of New York Office to track & recover lost customer assets as well as to manage legal action.
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