- OKX will return $157 million in frozen assets related to Alameda and FTX.
- Affiliated exchange Okcoin will return $8.2 million in frozen assets.
- The FTX debtors filed a motion seeking court approval to transfer the assets.
As the FTX bankruptcy unfolds, there’s at least some good news for depositors. A major exchange and its affiliate are working to return FTX’s frozen millions, so they can ultimately find their way to creditors and depositors.
OKX is cooperating with FTX and Alameda bankruptcy estates to return $157 million in frozen assets, the exchange said on Wednesday. Its affiliated exchange Okcoin also released a statement saying it will return $8.2 million.
Sponsored
The announcements come after FTX debtors filed a motion in the U.S. bankruptcy proceedings. The motion asked for approval for OKX and to transfer the assets. The court’s decision will likely come in the coming weeks, Okcoin said.
“OKX welcomes the motion,” the exchange stated, “and will continue to cooperate with the FTX debtors and law enforcement officials.”
OKX and Okcoin identified FTX assets in their corporate accounts following the FTX collapse. The two exchanges immediately froze the assets and waited for the court’s decision.
“Okcoin hopes that this cooperation plays a small role in making sure those who lost funds in the FTX collapse are made whole,” the exchange said.
Background on FTX Bankruptcy
FTX, a major crypto exchange, filed for Chapter 11 bankruptcy on November 11, 2022, after failing to fulfill customer withdrawals due to a liquidity crisis. Related entities, including FTX.US and trading firm Alameda Research, also filed for bankruptcy.
Following the bankruptcy, its founder Sam Bankman-Fried was arrested and charged with eight counts of financial and elections fraud. The charges include wire fraud, commodities fraud, and money laundering.
Investigations revealed that FTX had commingled corporate and customer funds, and executives had taken loans from these funds to finance luxury real estate and political donations.
On the Flipside
- FTX bankruptcy management revealed that almost $9 billion in consumer funds are missing from the exchange.
- A big part of FTX’s assets is in its native token FTT. Former FTX depositors would be in even worse shape if that token crashed further.
Why You Should Care
The OKX and Okcoin’s cooperation with FTX estates will make it more likely that FTX depositors will get some of their money back.
Read about the latest FTX report on missing funds:
FTX: $8.9 Billion Customer Funds Missing – Here’s What Happened
Read about the latest charges against FTX founder Sam Bankman-Fried:
SBF’s Woes Deepen as Chinese Official Bribe and Market Manipulation Allegations Surface
