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FTX Has Recovered Over $5B in Cash and Liquid Assets, Say Bankruptcy Attorney

Validated Media

The bankrupt cryptocurrency exchange FTX has recovered over $5 billion in cash and liquid assets. The attorney overseeing the exchange’s bankruptcy procedures made this known during a court hearing on Wednesday.

Source: Getty Images

FTX’s Attorney Admits to Locating $5 Billion in Assets

“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, noted.

The attorney also stated that the $5 billion assets discovered do not include the $425 million cryptocurrency in possession of the Securities Commission of the Bahamas.

While the announcement entails a headway from the previous $1 billion assets recovered by FTX’s new leadership and attorneys as of December 2022, the exact amount of FTX’s shortfall is unknown. And even with the $5 billion assets discovered, the attorney said the assets are probably still behind what it owed the customers.

“The amount of the shortfall is not yet clear. It will depend on the size of the claims pool and our recovery efforts. But every week we come closer to completing the work necessary to estimate recoveries for the purposes of a plan of reorganisation,” Landis said.

A Major Step to FTX’s Reorg.

FTX, a crypto exchange company, faced financial difficulties and filed for bankruptcy in November of last year. Following the bankruptcy filing, U.S. prosecutors accused the company’s founder, Sam Bankman-Fried, of orchestrating a major fraud that may have resulted in significant losses for investors, customers, and lenders.

The attorneys and advisers overseeing the bankruptcy process are now focused on recovering as much of the lost funds as possible and distributing them to creditors and those affected by the fraud.

The bankruptcy process can be complicated and time-consuming, but the recovery of more than $5 billion in cash and liquid cryptocurrencies and securities is a significant step towards ensuring that the creditors and victims can receive some form of compensation for their losses.

~ By Ibiam Wayas ~

Cryptocurrency FTX
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