On Wednesday, counsel for the bankrupt crypto trading board FTX, founded by Sam Bankman-Fried, announced that the company had recovered more than $5 billion. However, the extent of consumer losses in the collapse is still unknown.
US authorities accused Bankman-Fried of orchestrating an “epic” fraud that cost investors, clients, and lenders billions of dollars; The company was valued at $32 billion last year, but filed for bankruptcy in November.
Andy Dietderich, a lawyer for the failed cryptocurrency exchange FTX, said the company “returned $5 billion in cash and liquid coins.” The truth is that the exchange’s client deficit is “still unclear” as it continues to “work to reconstruct the transaction history.”
The Bahamas Securities Commission seized assets, most of which were the exchange’s original token, FTT. These assets are not included in the returned funds. At press time, the total value of all tokens in circulation is $444.7 million.
Furthermore, the bankruptcy attorney told Reuters that the company plans to sell non-strategic investments. The book value of the investment is $4.6 billion. The lawyer also stated that he found many illiquid crypto assets. However, this is more of a challenge for the market.
FTX Attorney Seeks Approval To Sell Affiliates
On Wednesday, FTX’s legal team appeared in court to request permission to sell LedgerX, Embed, FTX Japan, and Europe. FTX also sought permission from U.S. Bankruptcy Judge John Dorsey in Delaware to preserve the anonymity of its customers for six months.
Sam Bankman-Fried, the founder of the exchange, was indicted on two counts of wire fraud and six counts of conspiracy in Manhattan federal court last month on allegations that he stole customer deposits to pay off loans at a hedge fund, Alameda Research, and equity fraud. investors about the financial condition of crypto exchanges. So far, he has pleaded not guilty to the charges.
According to court documents, each of the four businesses planned to sell the crypto exchange operates independently of the rest of the FTX group and has its own customers and management.
Although the cryptocurrency exchange has received many unsolicited offers, it said it has no plans to sell the company and will start an auction next month.
FTX’s Bankrupt Founder, Sam Bankman-Fried, Denies All Criminal Charges
Sam Bankman-Fried, the disgraced founder of FTX, has pleaded not guilty to all criminal charges related to the collapse of the exchange. The U.S. Attorney’s Office for the Southern District of New York set up a Task Force to “trace and recover” lost customer funds and oversee investigations and prosecutions related to the exchange’s collapse. US lawmakers asked the judge in charge of the FTX bankruptcy case to appoint an “independent examiner,” but the judge rejected the motion due to potential conflicts of interest attracted.
Meanwhile, the price of the FTT token seems to be unstable due to the ongoing scandal in recent months. Since the exchange declared bankruptcy, the value of the token has fallen by almost 95%, from a high of $28 to the current $1.3, with no prospect of recovery.