FTX Recovers $5 billion in Liquid Assets to Repay Customers, But Extent of Loss Still Unknown

FTX’s attorney has said that the company has recovered over $5 billion in assets to repay customers and investors.

Sam Bankman Fried with dollar bills instead of eyes looking at a sinking car with a human on top reaching towards him.

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.

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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.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

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Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia