The FTX teams didn’t expect so much: the new management of the exchange has already managed to raise over $5 billion in the form of various assets, much more than initially expected. Furthermore, it is likely that this amount will continue to increase thanks to the various ongoing investigations.
FTX manages to raise funds
According to inside information from our colleagues at CoinDesk, FTX, the bankrupt exchange now run by John Ray III and his team, managed to recover the equivalent of more than 5 billion dollars in the form of various goods.
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The amount quoted here was spoken by a solicitor of Sullivan & Cromwell, charged with defending FTX. Furthermore, these 5 billion dollars do not take into account, according to him, 425 million dollars still held by the Bahamas Securities Commission, the body that seized the exchange’s assets just days after its bankruptcy.
“We have identified over $5 billion in cash, liquid cryptocurrency and measured liquid investment securities as of the petition date. No value can be assigned to holding dozens of illiquid cryptocurrency tokens, where our holdings are so large relative to the total supply that our holdings cannot be sold without materially adversely affecting the market for said token. »
Also according to the attorney’s statement, FTX would work in concert with the Bahamian authorities In order to evaluate the extent to which FTX and its subsidiaries could potentially generate value to repay its creditors:
” [C’est] an important first step in aligning incentives and maximizing joint recoveries. […] It doesn’t matter who gets $1 for customers, as long as customers get it. We have established a working group with the Official Committee of Creditors and JPL of the Bahamas to explore alternatives of selling or retooling the international platform. »
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A figure that could increase
Note that given the latest information, that might as well be the case the amount of assets recovered from FTX continues to increase significantly. Indeed, the amount raised revealed today is already well above the expectations of FTX’s current management.
At the end of December, the latter hoped to recover only about a billion dollars, and this when it estimated that it owed between 1 and 10 billion dollars to its various creditors (the precise amount remains undetermined to this day).
But other avenues for FTX remain to be explored. First, as Sam Bankman-Fried pleaded not guilty in US court, Manhattan prosecutors went into overdrive to recover the funds of the damaged usersand therefore took the lead in deploying a unit dedicated to this purpose” until justice is done “.
Then, in late December, the US Department of Justice launched an investigation to shed light on unauthorized wire transfers following the bankruptcy of FTX (which was then qualified as a hack). The amount of loot exceeded $400 million, and it is not impossible that these funds will one day be traced.
For now, the balance is positive for the new management of the defunct exchange, once Binance’s biggest rival.
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Source: CoinDesk
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Passionate about the world of decentralized finance and the innovations brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilian Prue
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