FTX Bankruptcy Attorney Says Crypto Exchange Recovered $5Bln In Various Assets - Reports

Muhammad Irfan Published January 12, 2023 | 12:24 AM

The cryptocurrency exchange FTX has managed to recover over $5 billion in various assets while the total amount of cash missing remains unclear, CoinDesk reported on Wednesday, citing FTX's bankruptcy attorney Adam Landis

WASHINGTON (UrduPoint News / Sputnik - 11th January, 2023) The cryptocurrency exchange FTX has managed to recover over $5 billion in various assets while the total amount of cash missing remains unclear, CoinDesk reported on Wednesday, citing FTX's bankruptcy attorney Adam Landis.

Landis added that an unknown amount of what is owed to the exchange is still missing, while the company's management at the time it filed for bankruptcy indicated that it could owe between $1 billion and $10 billion to its customers, according to the report.

"We have located over $5 billion of cash, liquid cryptocurrency, and liquid investment securities measured at petition date value. (It) just does not ascribe any value to holdings of dozens of illiquid cryptocurrency tokens, where our holdings are so large relative to the total supply that our positions cannot be sold without substantially affecting the market for the token," the report cited Landis as saying during a court hearing earlier in the day.

The new amount of recovered assets excludes $425 million that is currently being held by the Securities Commission of the Bahamas, the report also said.

Earlier in January, Sam Bankman-Fried, the former CEO of FTX, pleaded not guilty to Federal financial crime charges, including conspiracy to commit wire fraud, securities fraud, and money laundering.

In December, the US government indicted Bankman-Fried in what prosecutors have described as one of the biggest financial fraud cases in US history. Prosecutors allege that FTX violated US campaign finance laws and schemed to misappropriate customer funds.

Bankman-Fried was released last month on a $250 million bond while legal proceedings against him continue. If convicted, he faces a prison sentence of up to 115 years.