The FTX Debtors Identified $1.7 Billion Of Digital Assets Associated With FTX And FTX US
- Details on the digital assets that FTX Trading and FTX Debtors have so far located in their quest to recoup money from the insolvent crypto exchange and its subsidiaries have been made available.
- About half of the digital assets are already in possession of the FTX Debtors; the remaining half, however, was transferred to unapproved third parties after FTX sought bankruptcy relief and, in the case of FTX.com, was transferred to the Securities Commission of the Bahamas.
- The debtors also learned that FTX.com and FTX US had digital asset deficits.
According to a press release on Tuesday, FTX Trading and its related debtors, collectively known as the FTX Debtors, have released information on the digital assets they have so far discovered in their attempts to recoup funds from the insolvent crypto exchange and its subsidiaries.
To evaluate the firm’s financial status, FTX Trading discovered $5.5 billion in liquid assets.
According to a statement from the company, FTX Debtors have located $1.7 billion in cash, $3.5 billion in cryptocurrency, and $3 million in securities. FTX sought bankruptcy protection in November and may still owe its top 50 creditors $3.1 billion.
About half of those digital assets are already in possession of FTX Debtors; the remaining half, however, was transferred to the control of the Securities Commission of the Bahamas in the case of FTX.com and was also the subject of unauthorized third-party transfers after FTX sought bankruptcy protection.
John J. Ray III, the Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors said:
“We are making important progress in our efforts to maximize recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information. We ask our stakeholders to understand that this information is still preliminary and subject to change. We will provide additional information as soon as we are able to do so.”
With regard to FTX US, the debtors have identified about $181 million in digital assets, of which $90 million was transferred post-petition by unauthorized third parties, $88 million is kept in cold storage under the debtors’ control, and $3 million is on the verge of being done so.
Previously, Sam Bankman-Fried, the former CEO of FTX, stated that FTX US is fully solvent and able to reimburse its clients.
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