Some users have let out a sigh of relief
•FTX has recovered over $5B in cash and liquid crypto, according to FTX attorney Andy Dietderich.
• The exchange is still “working to rebuild transaction history,” and the total amount of customer shortfall is “still unclear.”
• Dietderich also stated that the company plans to sell $4.6 billion worth of non-strategic investments, including subsidiaries such as LedgerX, Embed, FTX Japan and FTX Europe.
• In response, presiding judge John Dorsey granted FTX’s request for the sale of its business units such as FTX Europe.
• Cointelegraph previously reported that FTX had $8.8 billion in total liabilities with very little in cash or liquid digital assets – this could amount to a $8B hole in its balance sheet.
Funds found for FTX
In the recent hearing held in Delaware, United States, FTX’s attorney, Andy Dietderich, stated that the troubled cryptocurrency exchange has “recovered $5 billion in cash and liquid cryptocurrencies.” However, FTX is still working to rebuild its transaction history, and the total amount of customer shortfall is still unclear. This news comes as a relief for many who were worried about the exchange’s financial status, as earlier reports suggested that FTX had seen losses peak at nearly $9 billion in total liabilities.
It should be noted that the recovered assets do not include those seized by the Securities Commission of the Bahamas, which largely comprises the exchange’s native token, FTX Token (FTT), which has a total market capitalization of $444.7 million at the time of publication.
The attorney also revealed that the company plans to sell $4.6 billion worth of non-strategic investments, including subsidiaries such as LedgerX, Embed, FTX Japan, and FTX Europe.
These companies are independent of FTX with segregated accounts and FTX Japan has already drafted plans to return customer funds. In addition, FTX will end its 2021-2028 sponsorship deal with popular multiplayer online battle arena game League of Legends. The CEO of FTX, John J. Ray III, stated that this move is aimed at helping to recover as much of the customers’ and investors’ funds as possible following the collapse of the company.
Judge Dorsey grants FTX’s request
The judge, John Dorsey, granted FTX’s request for the sale of its business units such as FTX Europe, though the company will not commit to a sale yet, and will explore bids first. This news comes as a relief for many as it suggests that there is still hope for the recovery of customers’ and investors’ funds.
This news of the recovery of $5 billion in cash and liquid crypto is a positive development for the company, but it’s important to note that the total amount of customer shortfall is still unclear, and FTX is still working to rebuild its transaction history. The collapse of FTX has sparked many investigations and several criminal charges have been filed against its founder, Sam Bankman-Fried, who has pleaded not guilty to all charges.
The United States Attorney’s Office for the Southern District of New York has also formed a task force to “trace and recover” missing FTX customer funds and handle investigations and prosecutions related to the exchange’s collapse.
In conclusion, the news of FTX’s recovery of $5 billion in cash and liquid crypto is a positive development, but it is important to note that the total amount of customer shortfall is still unclear, and investigations into the collapse of the company are ongoing. The exchange is working to rebuild its transaction history and is exploring options for the sale of its business units, including FTX Europe, in a bid to recover as much of the customers’ and investors’ funds as possible. The outcome of this situation remains uncertain and it will be worth monitoring developments closely.