The FTX teams did not expect so much: the new management of the exchange would have already managed to raise more than 5 billion dollars in the form of various assets, which is much more than what had initially been envisaged. Moreover, it is likely that this amount will continue to increase thanks to the various investigations in progress.
FTX : la nouvelle direction de l’exchange est parvenue à rassembler plus de fonds que prévu
FTX manages to raise funds
According to exclusive information from our colleagues at CoinDesk, FTX, the bankrupt exchange now piloted by John Ray III and his team, succeeded in recovering the equivalent of more than 5 billion dollars in the form of different assets.
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The amount quoted here was pronounced by a lawyer from Sullivan & Cromwell, in charge of defending FTX. Moreover, these 5 billion dollars do not take into account, according to him, $425 million still held by the Bahamas Securities Commission, the body that seized the exchange’s assets days after it went bankrupt.
“We have located over $5 billion in cash, liquid cryptocurrency, and measured liquid investment securities as of the petition date. It is not possible to assign any value to holding dozens of illiquid cryptocurrency tokens, where our holdings are so large relative to the total supply that our positions cannot be sold without adversely affecting substantially the market of said token. »
Also according to the lawyer’s statement, FTX would work in concert with the authorities of the Bahamas in order to assess the extent to which FTX and its subsidiaries could potentially generate value to repay their creditors:
” [C’est] an important first step to aligning incentives and maximizing joint recoveries. […] It doesn’t matter who gets 1 dollar for customers, as long as customers get it. We have set up a working group with the official committee of creditors and the JPL of the Bahamas to explore the alternatives of selling or reorganizing the international platform. »
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An amount that could increase
Note that given the latest information, it may well be that the amount of assets recovered by FTX continues to increase significantly. Indeed, the amount raised revealed today is already well above the expectations of the current management of FTX.
At the end of December, the latter hoped to recover only around one billion dollars, and this when it estimated that it owed between 1 and 10 billion dollars to its various creditors (the precise amount remains undetermined to this day).
But other avenues remain to be explored for FTX. First, while Sam Bankman-Fried pleaded not guilty in court in the United States, the Manhattan prosecutor went into overdrive to recover the funds of injured usersand thus took the initiative to deploy a dedicated unit for this purpose ” until justice is done “.
Then, at the end of December, the American Department of Justice launched an investigation in order to shed light on the unauthorized transfers following the bankruptcy of FTX (which had then been qualified as a hack). The amount of loot exceeded $400 million, and it is not impossible that these funds will be traced one day.
For now, the balance sheet is positive for the new management of the defunct exchange, formerly Binance’s biggest rival.
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Source: CoinDesk
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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