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, primarily consisting of the exchange’s native token FTT, are not counted among the recovered assets. At the time of publication, the market capitalization of the tokens was $444.7 million.
Coin Wu also tweet about this news:
FTX has recovered more than $5 billion in different assets, not including another $425 million in crypto held by the Bahamas, a bankruptcy attorney said during a hearing Wednesday. FTX’s total liabilities range from $10b to $13b, meaning creditors could recover around 40%.
— Wu Blockchain (@WuBlockchain) January 11, 2023
FTX has recovered over $5B in cash and liquid crypto
“We have located over $5 billion of cash, liquid cryptocurrency, and liquid investments securities”, Andy Dietderich — an FTX attorney — updated the case on Jan. 11, informing a bankruptcy judge in Delaware at the start of the FTX Senate Banking hearing.
Total liabilities for FTX are $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. The discredited FTX founder Sam Bankman-Fried has entered a not-guilty plea to all charges stemming from the exchange’s problems.
An FTX Task Force has been established by the Southern District of New York Office of the United States Attorney to “track and recover” lost client monies and to manage inquiries and legal actions connected to the collapse of the exchange.
On November 11, 2022, FTX declared bankruptcy, which resulted in founder Sam Bankman-Fried (SBF) being charged with fraud and costing investors, clients, and lenders a combined total of more than $10 billion. Attorneys and advisors are still working to secure money to pay off FTX’s creditors.
Read more:
- Customers Will Be Able To Withdraw Money From FTX Japan Starting In Mid-February
- Former FTX CEO Sam Bankman-Fried Pleaded Not Guilty To Federal Charges In New York