FTX recoups $5 billion in asset hunt when crypto exchange fails

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FTX said Wednesday that it has now located more than $5 billion in assets as part of its work to repay creditors. The failing crypto exchange had previously located over $1 billion in assets. FTX said it was building financials “from scratch.” LoadingSomething is being loaded.

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FTX has recovered over $5 billion in various assets, dramatically increasing the amount identified by new executives as the crypto exchange failed to repay creditors.

Assets include cash, liquid cryptocurrencies and liquid securities, FTX lead attorney Adam Landis said during a court hearing Wednesday in the company’s bankruptcy proceedings. .

The $5 billion figure is higher than the more than $1 billion in assets executives said in December they had regained.

The new amount places no value on the holdings of dozens of illiquid cryptocurrency tokens, Landis said. These holdings “are so large relative to the total supply that our positions cannot be sold without significantly affecting the market for the token,” he said.

The new figure also does not include the $425 million held by the Bahamas securities regulator, where FTX was based.

Despite finding more assets, FTX still has a big hole to fill. FTX in a November filing said it owed nearly $3.1 billion to 50 of FTX’s biggest creditors, but the total number of creditors exceeds 1 million and the overall asset shortfall is estimated to be in the billions. of dollars.

FTX also said Wednesday that it has identified more than 9 million customer accounts with approximately 120 billion associated transactions and is trying to recreate petition date claim values ​​for each customer.

“We build financial statements from the ground up using the general ledger and bank transaction records rather than incomplete and unreliable prior accounts receivable financial statements,” Landis said. “This will put us in a position to accurately describe the financial results of debtors for the first time.”

The now-defunct exchange said it had begun a process of strategically reviewing its assets by establishing “data rooms” and seeking interest from four operating subsidiaries, Landis said. Court documents reviewed by Insider showed that 117 parties expressed an interest in buying at least one of the four FTX companies.

“We are also well advanced in our plans to monetize more than 300 other non-strategic investments, with a book value of more than $4.6 billion,” Landis said.

Wednesday’s hearing came two months after FTX filed for Chapter 11 bankruptcy protection in the United States following allegations of misuse of customer funds and increased withdrawals. FTX founder Sam Bankman-Fried currently faces eight counts, including conspiracy to defraud the United States and violate campaign finance laws. He pleaded not guilty earlier this month.

FTX on Monday released a list of its top shareholders who likely saw their stakes wiped out, including high-profile names like NFL legend Tom Brady, New England Patriots owner Robert Kraft and model Gisele Bndchen.

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