by “FTX’s Asset Recovery Efforts Show Promising Results
Crypto exchange FTX has made significant progress in recovering assets in the wake of its bankruptcy filing. According to Sullivan & Cromwell attorney Adam Landis. The crypto exchange FTX has recovered more than $5 billion in different assets, but that doesn’t include an extra $425 million in cryptocurrency held by the Securities Commission of the Bahamas. This means that the company has found $5 billion in cash, liquid cryptocurrency, and liquid investment securities, but there is an additional $425 million in digital assets that are being held by a regulatory body in the Bahamas.
The company FTX has found over $5 billion in cash, digital currency, and investments but it looks like some more money is still missing. We don’t know exactly how much money is still missing. The company has some digital currency that is difficult to sell because they own a lot of it compared to how much there is available for sale. This could make it hard to sell without affecting the market price.
The announcement substantially raises the total assets FTX claims to hold, as the company’s new leadership had previously said they could only find just over $1 billion on December 20, 2022. The total amount FTX owes to its creditors is still unknown. In initial bankruptcy filings, the company’s management indicated a figure between $1 and $10 billion.
Landis went on to accuse the former CEO, Sam Bankman-Fried, of instructing his lieutenant Gary Wang to create a “backdoor” for Alameda to borrow from FTX customers without their permission. He also alleged that Bankman-Fried created a line of credit worth $65 billion from the exchange to the trading arm. He said that the money was used to purchase planes, houses, and to sponsor various events and personalities, which has led to a “shortfall in value” to repay customers and creditors.
The company’s money person, Mary Cilia, said that they think they can say how much money they can get back by April 2023. But, a judge in the court has said that they need to tell by March 15. A group that makes sure things are fair in the Bahamas is working with FTX to try and get as much money back as possible. It doesn’t matter who gets the money as long as the people who were owed money get it back.”
In conclusion, the bankruptcy case of FTX is still ongoing, with the company making significant progress in recovering assets, although the total amount owed to customers and creditors remains unclear. There are also serious allegations made against the former CEO, Sam Bankman-Fried, regarding misappropriation of funds and creating a ‘backdoor’ for unauthorized borrowing from customers. The situation is being closely watched by the investors and industry participants as the outcome of this case could have wide-reaching implications for the Crypto industry.
