FTX Debtors Identify $5.5 Billion In Liquid Assets
In what CEO John Ray referred to as a “Herculean effort” to analyze the firm’s financial status, troubled crypto exchange FTX discovered $5.5 billion in liquid assets.
Valentin
March 12, 2023
According to a statement from the company that was just released, the debtors of FTX have been 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.
“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,” Ray said in a statement. “We ask our stakeholders to understand that this information is still preliminary and subject to change.”
Tuesday’s meeting between the committee of unsecured creditors in the bankruptcy case and FTX’s top management and advisors included a presentation on the asset recovery procedure. The $5.5 billion in assets is marginally more than the $5 billion that FTX lawyers said they had discovered last week to a bankruptcy judge.
The creditors also learned that FTX.com and FTX US both had digital asset deficits. Debtors have located digital assets linked to FTX.com worth $1.6 billion. After the bankruptcy filing, $323 million of that total was the subject of improper third-party transfers, and another $426 million of that total is in the custody of Bahamas authorities.
“The assets identified as of the Petition Date are substantially less than the aggregate third-party customer balances suggested by the electronic ledger for FTX.com,” the company said.
Furthermore, in the press release, it is stated that:
“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,” said John J. Ray III, the Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors. “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.”
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