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Crypto exchange FTX has recovered more than $5 billion in liquid assets, but the extent of customer losses in its collapse is still unknown, a lawyer for the bankrupt company, founded by Sam Bankman, said on Wednesday. Fried.
The company, which was valued a year ago at $32 billion, filed for bankruptcy protection in November and US prosecutors accused Mr Bankman-Fried of orchestrating an epic fraud that allegedly cost billions dollars to investors, customers and lenders.
We have located more than $5 billion in cash, liquid cryptocurrency and liquid investment securities, Andy Dietderich, an attorney for FTX, told a U.S. bankruptcy judge in Delaware at the start of the court hearing. Wednesday.
Mr Dietderich also said the company plans to sell non-strategic investments with a book value of $4.6 billion.
However, Dietderich said the legal team was still working to create accurate internal records and the actual shortfall to clients remained unknown. The U.S. Commodities Futures Trading Commission estimated missing client funds at more than $8 billion.
FTX’s attorney estimated that the seized assets were worth just $170 million, while authorities in the Bahamas put the figure at $3.5 billion. The seized assets are largely made up of FTX’s proprietary and illiquid FTT token, which is highly volatile in price, Dietderich said.
Company founder Mr Bankman-Fried was charged with two counts of wire fraud and six counts of conspiracy last month in Manhattan federal court for allegedly stealing customer deposits to pay debts to his hedge fund, Alameda Research, and to lie to equity investors about FTX’s financial condition. He pleaded not guilty.
Mr. Bankman-Fried acknowledged flaws in FTX’s risk management practices, but the former billionaire said he did not believe he was criminally liable.
In addition to lost customer funds, the collapse of the company is also likely to have wiped out equity investors.
Some of those investors were disclosed in a court filing on Monday, including American football star Tom Brady, Brady’s former wife, model Gisele Bundchen, and New England Patriots owner Robert Kraft.
Sam Bankman-Fried in pictures
Updated: January 11, 2023, 8:22 p.m.
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