Over $5B in cash and liquid crypto has been retrieved by FTX

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Over B in cash and liquid crypto has been retrieved by FTX

The ailing cryptocurrency exchange has “recovered $5 billion in cash and liquid cryptocurrencies,” claims FTX attorney Andy Dietderich. The entire amount of the client shortfall is “still unclear,” and the exchange is currently “trying to restore transaction history.” The Securities Commission of the Bahamas seized assets, which mostly consist of the exchange’s native token, FTX Token (FTT), with a total market capitalization of $444.7 million at the time of publication, are not counted among the recovered assets.

Judge John Dorsey, who is presiding, agreed to FTX’s desire to sell some parts of the company, including FTX Europe. Dietderich stated that the business will consider offers but will not make a selling commitment just yet.

On January 11, Dietderich told a bankruptcy judge in Delaware that the business intended to sell non-strategic investments worth $4.6 billion, including subsidiaries including LedgerX, Embed, FTX Japan, and FTX Europe. The businesses have separate accounts and are unrelated to FTX. Plans for FTX Japan’s refund of consumer monies have already been created. In addition, FTX will no longer sponsor the well-known multiplayer online combat arena game League of Legends from 2021 to 2028.

According to an earlier report from Cointelegraph, FTX’s total liabilities were $8.8 billion. Sources at the time said that the exchange’s cash and liquid digital assets were extremely low, leaving an estimated $8 billion gap on its balance sheet. Following consumer concerns about possible identity theft, FTX requested permission from the court to keep customers’ names secret for three months at the hearing on January 11.

The infamous FTX founder Sam Bankman-Fried has entered a not guilty plea to all charges stemming from the exchange’s debacle. A task force has been established by the Southern District of New York Office of the United States Attorney to manage investigations and prosecutions pertaining to the collapse of the exchange as well as “track and recover” missing FTX customer monies. Due to worries about conflicts of interest, US lawmakers had earlier requested that the court in the bankruptcy case for FTX allow a “independent examiner,” but the sitting judge rejected their request.

News Summary:

  • Over $5B in cash and liquid crypto has been retrieved by FTX
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