The $5 billion recovered funds are still not enough to cover the amount FTX stole from its customers.
In a recent statement made by the Attorney of FTX ‘Andy Dietderich’, he claimed that the team has located over $5 billion of cash, liquid cryptocurrency and liquid investment securities. The statement was part of the hearing on Wednesday led by U.S. Bankruptcy Judge John Dorsey in Delaware.
To further clarify, $5 billion does not include $425 million in the crypto assets held by the Securities Commission of the Bahamas. The announcement adds up to the total assets FTX holds which in Dec 2022, stands at a little over $1 billion as recorded by the new leadership team at FTX.
To add weight to his statement, Dietderich said that the company has planned to sell nonstrategic investments with book value of $4.6 billion. He also added that the total value of seized assets stands at $170 million against $3.5 billion claimed by Bahamian authorities.
The seized assets are largely made up of the FTT token which was the native token issued by the exchange. Behind the drama, there are customers waiting to receive their deposits back from the exchange after FTX froze withdrawals before filing for bankruptcy.
It is now clear that FTX CEO Sam Bankman Fried (SBF) and CEO of Alameda Research colluded and used customer deposits for their own benefit.
The funds which now stand at $10 billion were used for leisure activities, purchasing properties, donating to politicians, throwing parties and investing in Alameda owned projects. These mindless activities led to the shortfall of cash to pay back to creditors and customers.
Earlier, SBF was released on $250 million bail after being extradited to the US. He is put under house arrest under the surveillance of his parents in California.
Days after SBF’s arrest, the former executives and co-workers of Sam Bankman-Fried including Caroline Ellison and Gary Wang (FTX co-founder) pleads guilty to federal fraud charges.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.