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12 Jan, 2023 13:23

FTX crypto exchange recovers $5 billion

Liquid assets include cash, cryptocurrency and securities, lawyers of the bankrupt company say
FTX crypto exchange recovers $5 billion

FTX has located more than $5 billion, including cash and virtual assets, attorneys for the defunct cryptocurrency exchange told a Delaware bankruptcy court on Wednesday.

The recovered funds do not include the assets seized by the Securities Commission of the Bahamas, which are largely in the exchange’s native token, FTX Token. The total market cap of those funds totaled $459.4 million as of 11:30 GMT.

The exchange, however, is still “working to rebuild transaction history,” according to FTX attorney Andy Dietderich, who said the company’s clients are still owed money, but the amount is “still unclear.”

“We have located over $5 billion of cash, liquid cryptocurrency and liquid investment securities measured at petition date value,” Landis Rath & Cobb attorney Adam Landis said on FTX's behalf.

“[It] just does not ascribe any value to holdings of dozens of illiquid cryptocurrency tokens, where our holdings are so large relative to the total supply that our positions cannot be sold without substantially affecting the market for the token.”

FTX’s new CEO, John J. Ray, has previously confirmed that at least $8 billion of customer assets were unaccounted for in the “worst” case of corporate control he has ever seen.

The cryptocurrency exchange, once ranked one of the world’s biggest, filed for bankruptcy in November, causing major ripple effects across the entire industry. In initial bankruptcy filings, the company's management indicated a figure between $1 billion and $10 billion in funds owed to customers.

Last week, Sam Bankman-Fried, the disgraced founder of FTX, pleaded not guilty on eight criminal charges in a US federal court. The US Attorney's Office for the Southern District of New York has formed a task force to track and recover missing customer funds and conduct investigations and prosecutions related to the collapse of the exchange.

For more stories on economy & finance visit RT's business section

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