Breaking: FTX Announces $5 Billion In Recovery; Is It Finally Coming Back?

What comes in as breaking news, the derailed crypto exchange FTX has announced its recovery of $5 billion in cash and liquid crypto.
By Pratik Bhuyan
Updated 23 hours ago
FTX $5 billion

The troubled cryptocurrency exchange FTX is said to have “recovered $5 billion in cash and liquid cryptocurrencies,” as stated by an attorney who is familiar with the situation. Despite this, the exchange is “working to rebuild transaction history”. This comes excluding the additional $425 million worth of cryptocurrency that is being held by the Securities Commission of the Bahamas.

Advertisement
Advertisement

FTX Recovers $5 Billion

As previously reported by CoinGape, FTX’s total liabilities amount to $8.8 billion. The exchange was said to have limited cash and liquid digital assets at the time, which equated to an estimated $8 billion gap in its balance sheet, according to FTX’s newly appointed CEO John J. Ray III.

Read More: Why Is Sam Bankman-Fried Hiding FTX’s Client Names?

At the outset of Wednesday’s hearing, FTX’s attorney Andy Dietderich informed a U.S. bankruptcy judge in Delaware that:

We have located over $5 billion of cash, liquid cryptocurrency and liquid investment securities measured at petition date value. Our holdings are so large relative to the total supply that our positions cannot be sold without substantially affecting the market for the token.

Although the company’s finances have been labeled as inaccurate, Dietderich states that the organization has plans to liquidate non-strategic holdings that have a valuation of $4.6 billion. On the other hand, while speaking about seized assets by the Bahamian authorities, the FTX attorney estimated the assets to be worth as little as $170 million; which the government body touted to be as high as $3.5 billion. According to Dietderich, the majority of the confiscated assets are made up of FTX’s proprietary and illiquid FTT crypto token, the value of which is subject to extreme price swings.

Advertisement
Advertisement

The FTX Fiasco

In November, the company submitted its petition for bankruptcy, and in December, prosecutors in the United States accused Bankman-Fried of masterminding an “epic” fraud that may have cost investors, consumers, and lenders billions of dollars. Currently, the insolvent firm’s advisers and attorneys are attempting to recoup funds in order to pay back creditors.

The discredited FTX founder Sam Bankman-Fried recently entered a not-guilty plea to all charges stemming from the exchange’s failures. An “FTX Task Force” has been established by the Southern District of New York Office to track & recover lost customer assets and also to manage legal actions connected to the collapse of the exchange.

Also Read: Nearly $12 Billion Vanishes From Binance’s Assets; What’s Going On?

Advertisement
Pratik Bhuyan
Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now - he has seen it all.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.