FTX attorney Andy Dietderich recently stated the bankrupt crypto exchange “recovered $5 billion in cash and liquid cryptocurrencies,” media reported this week.
In an 11 January statement to US bankruptcy judges in Delaware, FTX was “working to rebuild transaction history.” The collapsed exchange’s total amount of missing funds was also “still unclear,” it added.
Reports show recovered assets do not include the Bahamian Securities Commission’s seized assets from FTX. This mostly includes the exchange’s native FTT token.
He also noted FTX would sell $4.6 billion in non-strategic investments such as subsidies from its Japanese and European branches. The two segregated from FTX’s main operations.
FTX Japan previously had a sponsorship agreement with online multiplayer game League of Legends. Following the collapse, the branch pledged to return funds to affected clients.
Judge John Dorsey, who presides over the case, also approved FTX’s request to sell off FTX Europe and other branches. According to Dietderich, FTX has not committed to a sale to date.
Background on FTX Crisis
The news comes after FTX faced a massive liquidity crisis in November. This triggered a huge bank run on its FTT token and the subsequent collapse of the firm, leaving over $8 billion in liabilities.
Courts later approved FTX’s request to anonymise client names for three months after identity theft claims. Currently, US courts have organised a task force to recover the crypto funds.
The news comes after the exchange’s disgraced ex-chief executive, Sam Bankman-Fried, pleaded not guilty to all criminal charges. According to reports, the crypto exchange splurged $40 million on travel, hotels, and
Caroline Ellison, research wing Alameda Research’s ex-CEO, struck a plea deal with courts. This would drop seven of the eight charges previously faced, which totalled 110 years in prison.
