Attorney says that FTX, a failed crypto-exchange, has been able to recover more than $5 billion

Crypto exchange FTX has recouped more than $5B in liquid assets, but it is not clear how many customers were affected by its collapse, according to Sam Bankman-Fried, the attorney of the bankrupt company.

Bankman-Fried was accused by U.S. prosecutors of orchestrating an “epic” fraud that may have caused billions in losses to investors, customers, and lenders.

Andy Dietderich (an attorney representing FTX) stated that he had found more than $5 billion in cash, liquid crypto, and investment securities at Wednesday’s hearing.

Dietderich stated that non-strategic investments with a book value over $4.6 billion will be sold by the company.

Dietderich stated that the legal team continues to work on creating accurate records within the company and that the exact customer shortfall is unknown. According to the U.S. Commodities Futures Trading Commission, missing funds amount to more than $ 8 billion.

Dietderich stated that the $5 billion recovered did not include assets seized or repossessed by the Securities Commission of the Bahamas where Bankman-Fried was found.

The seized assets are valued at $170 million by FTX, while $3.5 billion is estimated by Bahamian authorities. Dietderich stated that the majority of the seized assets were made up of FTX’s proprietary, illiquid FTT token which can be highly volatile in its price.

On Wednesday, U.S. Bankruptcy Judge John Dorsey granted FTX the request to keep secret 9,000,000 FTX customers’ names. He allowed names to be kept secret for three months and not six as FTX requested.

Dorsey stated that “The problem here is that I do not know which customer it is.” A hearing was scheduled for January 20th to talk about how FTX would distinguish customers. He also stated that FTX should return within three months so they can provide more information on identity theft if customer details are publicized.

The U.S. and media companies The U.S. and media companies. Trustee is a watchdog for government bankruptcy that falls under the Department of Justice. It argued that U.S. bankruptcy law demands disclosure of creditor information to guarantee transparency, fairness, and fairness. FTX stated that disclosing customers’ names might allow competitors to seize users and reduce the company’s value.

On Wednesday, FTX’s legal department requested approval for the sale of affiliates LedgerX and Embed to FTX Japan, FTX Europe, and FTX Japan.

According to FTX court filings, the affiliates are fairly independent of the broader FTX Group. Each has separate customer accounts and management teams.

Although the crypto exchange said that it was not planning to sell any companies it acquired, it did receive dozens of unrequested offers. It plans to auction off its assets starting next month.

Trustee opposed the sale of affiliates until the full extent of the alleged FTX fraud has been investigated.

A company lawyer announced Wednesday that FTX would end its sponsorship agreement with League of Legends. This deal was in place since 2021.

Bankman-Fried (30), was charged with wire fraud and conspiracy in connection to allegedly stealing customers’ deposits in order to repay Alameda Research’s debts and lying to investors regarding FTX. He has pleaded guilty.

Although Bankman-Fried acknowledged FTX’s shortcomings in risk management, the billionaire once again said he doesn’t believe he was criminally liable.

The collapse of the business has likely resulted in the loss of equity investors as well as customer funds.

In a Monday court filing some of these investors were revealed, including American football player Tom Brady and Gisele Bundchen, Brady’s ex-wife, as well as Robert Kraft, the New England Patriots owner.


Please enter your comment!
Please enter your name here

Share post:


More like this