In a creditors meeting held on Tuesday, December 20th, the new management of FTX announced that the beleaguered cryptocurrency exchange has over $1 billion in cash assets locked in financial institutions.
FTX’s New Management Identifies Over $1 Billion in Cash Assets
The new management behind collapsed FTX has disclosed that they have located and are working to access over $1 billion in assets, including $720 million in cash, in hundreds of bank accounts.
In addition, $500 million is already being held in U.S. institutions, with another $130 million locked up in Japan. FTX also has $6 million for operational expenses, $423 million at unauthorized U.S. institutions, and $485 million at an authorized deposit institution.
FTX’s new chief financial officer, Mary Cilia, said in the bankruptcy proceedings they have reached out to “change the signatories on the accounts … to access the accounts and move the cash as much as we can to authorized depository institutions.”
When Will FTX Users Be Able to Withdraw Funds?
Steve Coverick, a senior director at FTX’s financial advisors Alvarez & Marsal, noted that there are “ongoing efforts” to identify FTX’s international crypto assets and move them to cold wallets, using custodial providers such as Bitgo.
Despite its recent recoveries and Bankman-Fried’s claim that FTX has enough funds to compensate customers, the funds of affected users could take a couple of months before being released because of the procedures involved in a bankruptcy filing.
On the Flipside
- Despite filing for bankruptcy, FTX has still not filed a statement of assets or its financial position as required under U.S. bankruptcy law.
Why You Should Care
The recovery of funds could raise the hopes of affected users that their funds could be rescued in the bankruptcy proceedings.
Read about Bankman-Fried’s claim below:
FTX Has Enough Funds to Compensate Customers – Sam Bankman-Fried Wants to Restart the Exchange
Get the latest updates on the FTX case in:
SBF Set for US return, Signs Extradition Papers