FTX Lawyers Claim $5 Billion Recovered In “Liquid” Assets

On Wednesday, a counsel for the bankrupt crypto trading venue FTX, founded by Sam Bankman-Fried, stated that the corporate recovered greater than $5 billion. Nevertheless, the magnitude of consumer losses in its collapse was still unknown.

U.S. authorities have accused Bankman-Fried of organizing an “epic” scam that will have cost investors, clients, and lenders billions of dollars; the corporate’s valuation was $32 billion a 12 months ago, however it filed for bankruptcy in November.

Andy Dietderich, an attorney for the failed cryptocurrency exchange FTX, says that the corporate has “recovered $5 billion in money and liquid coins.” The total extent of the exchange’s client deficit is “still unclear” as they proceed “working to rebuild transaction histories.” 

The Securities Commission of the Bahamas seized assets, most of which were the exchange’s native token, FTT. These assets weren’t included within the funds that were recovered. As of press time, the whole value of all tokens in circulation was $444.7 million.

Moreover, the bankruptcy lawyer is claimed to have told Reuters that the corporate plans to unload investments that should not strategic. The book value of those investments is $4.6 billion. The attorney also claimed that they’d discovered many illiquid crypto assets. Nevertheless, these are tougher to market. 

FTX Attorney Seeks Approval For Selling Affiliates

On Wednesday, FTX’s legal team appeared in court to hunt permission to sell LedgerX, Embed, FTX Japan, and Europe. FTX can be searching for US Bankruptcy Judge John Dorsey’s consent in Delaware to take care of the anonymity of its customers for six months.

Sam Bankman-Fried, the exchange founder, was indicted on two counts of wire fraud and 6 conspiracy counts in Manhattan federal court last month on allegations that he stole customer deposits to repay debts at his hedge fund, Alameda Research, and lied to equity investors in regards to the crypto exchange’s financial condition. To this point, he has pleaded not guilty to the fees. 

In line with court documents, each of the 4 businesses the crypto exchange plans to sell operates independently from the remaining of the FTX group and has its own set of consumers and management.

Despite the fact that the cryptocurrency exchange has received numerous unsolicited offers, it says it has no plans to sell any of the businesses and can as a substitute start auctioning them off next month.

FTX’s Bankrupt Founder, Sam Bankman-Fried, Denies All Criminal Charges

Sam Bankman-Fried, the disgraced founding father of FTX, has pleaded not guilty to all criminal charges related to the collapse of the exchange. The US Attorney’s Office for the Southern District of Recent York arrange the Task Force to “track and recuperate” lost customer funds and oversee investigations and prosecutions related to the collapse of the exchange. US lawmakers asked the judge accountable for the FTX bankruptcy case to appoint an “independent examiner,” however the judge denied the motion as a consequence of a possible conflict of interest.

FTT price chart. Source: FTT/USDT on TradingView.com

Meanwhile, the worth of the FTT token appears unstable in light of the continued scandal of recent months. For the reason that exchange declared bankruptcy, the token’s value has fallen by almost 95%, from an all-time high of $28 to its present value of $1.3, with no prospect of ever recovering.

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