FTX has recovered approximately $5 billion in cash and liquid cryptocurrencies
According to previous estimates, FTX’s losses peaked at approximately $9 billion in total liabilities.
The struggling cryptocurrency exchange has “recovered $5 billion in cash and liquid cryptocurrencies,” according to FTX attorney Andy Dietderich. However, the exchange is still “rebuilding transaction history,” and the overall client shortage is “yet unknown.” The recovered assets do not include those confiscated by the Securities Commission of the Bahamas, which mostly consists of the exchange’s native token, FTX Token, which had a market value of $444.7 million at the time of publishing.
Dietderich told a U.S. bankruptcy court in Delaware on January 11 that the business intends to liquidate non-strategic interests worth $4.6 billion, including companies such as LedgerX, Embed, FTX Japan, and FTX Europe. The firms are separate from FTX and have separate accounts. FTX Japan has already established refund measures for consumer funds. In addition, FTX will terminate its sponsorship agreement with the famous multiplayer online combat arena game League of Legends from 2021 to 2028.
In response, presiding judge John Dorsey approved the sale of FTX’s corporate entities, including FTX Europe. Dietderich said that the organization would investigate offers but will not commit to a sale at this time.
Previously, Cointelegraph stated that FTX has total liabilities of $8.8 billion. At the time, insiders claimed that the exchange’s lack of cash and digital assets amounted to an $8 billion hole on its financial sheet. During a hearing on January 11, FTX got court clearance to keep clients’ identities hidden for three months after consumers expressed worries about identity theft.
Sam Bankman-Fried, the disgraced founder of FTX, pled not guilty to all criminal charges relating to the collapse of the exchange. The United States Attorney’s Office for the Southern District of New York has established a task force to “track and recover” lost FTX customer funds and conduct investigations and charges linked to the collapse of the exchange. Concerned about potential conflicts of interest, U.S. politicians earlier urged the court to appoint an “independent examiner” to FTX’s bankruptcy case, but the request was denied by the presiding judge.