The debtors behind FTX have recognized $5.5 billion in liquid property however reported a “substantial shortfall of digital property” on the bankrupt crypto alternate and its U.S. arm.
In a Jan. 17 announcement, FTX mentioned it had recognized $1.7 billion in money, $3.5 billion in crypto property and $0.3 billion in securities following the agency submitting for Chapter 11 chapter in November. The debtors added that that they had recognized roughly $1.6 billion in digital property related to FTX.com — together with roughly $426 million being held by the Securities Fee of The Bahamas — and $181 million related to FTX US.
“We’re making vital progress in our efforts to maximise recoveries, and it has taken a Herculean investigative effort from our workforce to uncover this preliminary info,” mentioned FTX CEO John Ray. “We ask our stakeholders to know that this info remains to be preliminary and topic to alter. We are going to present further info as quickly as we’re ready to take action.”
Sharing the FTX Debtors’ press launch simply issued: https://t.co/fcSs36nFmq
— FTX (@FTX_Official) January 17, 2023
The debtors added that of the $1.6 billion related to FTX.com, they managed $742 million of property in chilly storage and one other $121 million could be out there, pending switch. From FTX US, the debtors held $88 million in chilly storage, with $3 million pending switch.
FTX’s chapter case, at the moment continuing within the District of Delaware, revealed in November that the agency owed greater than $3 billion to its prime 50 collectors — there could also be a couple of million collectors with claims to property on the crypto alternate. Court docket proceedings from January recommended that FTX had “recovered $5 billion in money and liquid cryptocurrencies,” however the agency may nonetheless have as much as $8.8 billion in complete liabilities.
“Based mostly on present estimates of the quantity of digital property related to the FTX.com and FTX US exchanges as of the Petition Date, there’s a substantial shortfall of digital property at each exchanges,” mentioned the debtors.
Associated: Former FTX US President lashes out at ‘insecure’ SBF in 49-part Twitter thread rant
Former FTX chief govt officer Sam Bankman-Fried, who launched a “pre-mortem overview” of the crypto alternate’s insolvency on Jan. 12, claimed FTX US was “absolutely solvent” and able to making its customers complete. He added on the time if FTX Worldwide have been to “reboot,” it could be attainable for the alternate to reimburse clients with property available. Bankman-Fried is dealing with eight felony costs within the FTX case, together with for alleged violations of marketing campaign finance legal guidelines and wire fraud.
