FTX has recovered $5 billion worth of liquid assets, including cash and digital assets. Delaware bankruptcy court attorneys said Wednesday during an bankruptcy hearing.
The news comes after federal. Prosecutors announced plans to seize at least $500 million worth of . -linked assets as part of. The ongoing trial of co-founder Sam Bankman-Fried.
The recovery will be a welcome boon for . FTX customers after the crypto exchange launched in November. new CEO, John Jay Ray, before testified. That at least $8 billion in customer assets were unaccounted for in . The “worst” case of corporate controls he had ever seen.
The $5 billion figure does not include any illiquid cryptocurrency assets. attorney Adam Landis told the court. He said the company’s holdings were so large . That selling them would affect the market. Reducing their value.
FTX’s decline was related to, among other things. A failure to identify liquid assets in the market. executives, including Bankman-Fried and . Alameda Research CEO Carolyn Ellison, borrowed against. The value of the -issued token FTT. Alameda controlled. The majority of FTT coins, like the float of a traded company. And could not divest their positions at full book value.
