In the last court hearing, an FTX bankruptcy attorney said that the fallen crypto exchange had recovered more than $5 billion worth of liquid assets in cash and crypto, including an additional $425 million.
FTX Recovers $5 Billion in Liquid Assets
In a bankruptcy hearing on Wednesday, January 11th, FTX attorney Andrew Dietderich told the Delaware court that the exchange had recovered over $5 billion worth of liquid cash and crypto assets.
Attorney Dietderich also said the company had recovered another $425 million in crypto held by the Securities Commission of the Bahamas. However, he notes that an unclear sum of customer funds remains missing.
This contradicts the company’s new leadership claim on December 20th that FTX only found $1 billion. Landis Rath & Cobb, on FTX’s behalf, said that SBF created a “backdoor” for Alameda to borrow FTX customer funds without permission.
When Will FTX Customers Receive Their Funds?
Although the recovery significantly raises the FTX claims it holds, the total amount of customer funds remains unclear. In its initial bankruptcy filing, FTX stated that the figure could be between $1 and $10 billion.
The figure will depend on the size of the claims pool and the recovery efforts. Attorneys have noted that they may be able to sell the recovered assets to help repay customers and investors.
On the Flipside
- Attorney Dietderich also said FTX advisers have warned against selling a significant amount of crypto to avoid depressing the market price of digital tokens.
Why You Should Care
The recent reveal brings FTX closer to ending the process of estimating recoveries to plan a reorganization.
The recovery of $1 billion is covered in:
FTX Has Over $1 Billion in Cash Assets, New Management Tells Creditors
Read more on the FTX case below:
BlockFi and FTX Lay Claim to Robinhood (NASDAQ:HOOD) Stocks to be Seized by US DOJ