The lawyers of the FTX exchange informed the bankruptcy court in the US state of Delaware that they managed to recover some of the liquid assets. Their value was estimated at 5 billion dollars.
“We’ve located over $5 billion in cash, cryptocurrencies and investment papers,” said Andy Dietderich, an attorney at FTX, before a bankruptcy court in the US state of Delaware.
Recovered money
Dietderich also said the company plans to sell non-strategic investments with a book value of $4.6 billion. However, this will not include assets seized by the Securities and Exchange Commission in the Bahamas, where the company was headquartered and where its founder Sam Bankman-Fried lived.
Most of FTX’s clients and investors who suffered losses were not named in the hearings. However, the court documents did show American football star Tom Brady, his ex-wife Giselle Bündchen and the owner of the New England Patriots sports team Robert Kraft.
FTX Bankruptcy
The exchange, launched in 2019 and based in the Bahamas, filed for bankruptcy on November 11 as traders rushed $6 billion off the platform in just 72 hours. It has since been revealed that Bankman-Fried secretly used $10 billion in customer funds to support his business.
Bankman-Fried was charged with eight counts of fraud, embezzlement and campaign finance violations in New York City in the aftermath of the stock market collapse. Separate allegations were also made by the stock exchange regulator SEC.
Bankman-Fried used customer money to cover the debts and expenses of his investment fund, Alameda Research, according to New York prosecutors. The 30-year-old is also accused of colluding to break election campaign finance laws. It was supposed to pay money to the election campaigns of politicians of both major American parties using the so-called poles, as well as from corporate accounts, which is prohibited
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Main photo source: JUSTIN LANE/EPA/PAP