Bankrupt Exchange FTX has recovered $7.3B in assets. The bankrupt crypto exchange has recovered approximately $7.3 billion in cash and liquid crypto assets and is considering reopening for business.
Keynotes
- Bankrupt Crypto exchange, FTX recovers $7.3B in assets.
- This was relayed by an attorney of the failed platform to a judge on Wednesday.
Following the firm’s failure under its previous CEO and founder, Sam Bankman-Fried, FTX’s new leadership, led by current CEO John J. Ray III, is attempting to recover as much money as possible from customers and investors.
At a court hearing in Delaware, FTX lawyer Andy Dietderich stated that the platform has amassed an additional $2.4 billion since declaring in January that it has approximately $5 billion in cash, digital assets, and investment instruments. Following the hearing, the FTX Token (FTT) price increased by almost 110%.
Prior to its demise, FTX was the world’s second-largest crypto exchange, with a market capitalization of over $32 billion. Ray previously warned customers and investors who put their money in FTX to not hold out hope for a full recovery, telling a congressional panel late last year, “We will never get all these assets back.”
According to a statement made by Dietderich in the court hearing in Delaware, he said,
“The discussion around reviving the exchange is in the early stages, and any decision would not be expected until the second quarter of 2024. “A reopened exchange may allow creditors to convert part of their holdings into actual stakes in the platform.”
Dietderich added that the company is beginning to look to its future after spending the months since its November bankruptcy collecting resources and trying to figure out what led to its collapse under the previous management team.
“The situation is stabilized, and the dumpster fire is out,” Dietderich told the court.
Earlier this week, the FTX debtors filed an initial report on what caused the exchange’s demise, writing in their overview that “while the FTX Group’s failure is novel in the unprecedented scale of harm it caused in a nascent industry, many of its root causes are familiar: hubris, incompetence, and greed.”
According to the report, under former leadership, FTX and its affiliated entities lacked the necessary management, governance, and organizational structure for their size, as well as the financial and accounting controls required for a multibillion-dollar corporation.
