Cash, cryptocurrencies, and equity are examples of liquid assets, according to the bankrupt company’s attorneys.
According to FTX’s attorneys, the defunct cryptocurrency exchange has found more than $5 billion in assets, including cash and digital ones.
The assets that the Securities Commission of the Bahamas seized, most of which are in the exchange’s native token, FTX Token, are not included in the recovered monies. As of 11:30 GMT, the combined market capitalization of those funds was $459.4 million.
Andy Dietderich, an attorney for FTX, says that the exchange is still “trying to reconstruct transaction history,” and that the amount owed to the company’s clients is “still unknown.”
Adam Landis, an attorney at Landis Rath & Cobb, stated on behalf of FTX, “We have identified nearly $5 billion in cash, liquid cryptocurrency, and liquid investment securities measured at petition date value.”
“[It] simply does not attach any value to ownership of dozens of illiquid cryptocurrency tokens when our holdings are so enormous relative to the total supply that our positions cannot be sold without significantly impacting the market for the token,” the author writes.
The Bahamas seizes billions of dollars in FTX customer funds.
John J. Ray, who is now the CEO of FTX, said that the way the company was run was the “worst” he had ever seen. He said that at least $8 billion in customer assets could not be found.
The bankruptcy filing of the once-largest cryptocurrency exchange in the world in November had a significant impact on the whole sector. The management of the business estimated that between $1 billion and $10 billion was owed to customers in the original bankruptcy filings.
Sam Bankman-Fried, the disgraced founder of FTX, entered a not guilty plea last Thursday in a US federal court to eight criminal accusations. The US Attorney’s Office for the Southern District of New York has established a task force to look into the exchange’s collapse, find missing customer funds, and file legal charges.
