FTX Launches Asset Review; Here’s How Remaining Holdings Stands
The collapsed cryptocurrency exchange FTX and about 100 affiliated companies on Saturday launched a strategic review of global assets. It is a part of the Chapter 11 bankruptcy process. However, the firm will also be preparing for the sale or reorganization of some of the related assets and businesses.
FTX $2 bln funds drop massively
FTX and its affiliates filing for bankruptcy on Nov 11 is considered one of the biggest blows to the crypto industry. The debacle left more than 1 million customers and investors facing huge losses amid the bear market conditions.
However, FTX and its affiliates sought some relief to permit the operation of its new cash management system which is critical to its vendors. As per filings, the collapsed firm asked the court to allow them to pay prepetition claims of up to $9.3 million to vendors.
According to reports, the largest identified financial position is at FTX EU Ltd. It holds around $49.4 million in total cash. While West Realm Shires Services Inc, encompassed by FTX.US, crypto exchange and other acquisitions hold $48.1 million.
Filings revealed that the $2 billion fund launched by FTX Ventures in January had less than $800k worth of funds available in cash. The collapse exchange mentioned that these positions were calculated based on verifiable available books.
Affiliated firms are solvent, claims John J. Ray III
FTX’s new CEO John J. Ray III in a statement highlighted some main points from the review based on the past week. He mentioned that they are happy to see that many regulated and licensed companies of the collapsed exchange have solvent balance sheets.
He added that more than of identified bank accounts have yet to have their balance sheet verified. However, other accounts may exist.
The collapsed exchange has left a major dent in the crypto market as more than $100 billion worth of money vanished from the industry in just a few days.
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