The new FTX management retrieves over $5 billion in cash, liquid cryptocurrency, and liquid investments in securities measured at petition date value, up from $1 billion in December 2022.
FTX’s lead attorney Adam Landis stated at a court hearing in Delaware that “[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 assets that the Securities Commission of the Bahamas seized mainly consisting of the exchange’s FTT token, with a total market capitalization of $425 million is not counted among the newly retrieved assets.
In November, a court filing stated FTX Trading LTD owes over $3 billion to its top 50 creditors. As per the filing, FTX owes the top creditor $226 million and its fiftieth-largest creditor about $21 million.
According to Landis, FTX intends to sell non-strategic investments totaling $4.6 billion, including companies like LedgerX, Embed, FTX Japan, and FTX Europe.
“We know what Alameda did with the money. It bought planes, houses, threw parties, made political donations. It made personal loans to its founders. It sponsored the FTX Arena in Miami, a Formula One team, the League of Legends, Coachella and many other businesses, events and personalities,” Landis added.
The U.S. bankruptcy judge John Dorsey approved the sale of FTX’s corporate divisions, including FTX Europe. Landis stated that the business will consider offers but will not make a selling commitment just yet.
Landis continued “The amount of the shortfall is not yet clear. It will depend on the size of the claims pool and our recovery efforts. But every week we come closer to completing the work necessary to estimate recoveries for the purposes of a plan of reorganization.”
The team is currently working to determine the value of holdings on November 11 “for every customer,” according to Landis, who added that FTX has also located more than 9M customer accounts connected to around $120 billion in associated transactions.
A few days ago, US authorities formed an FTX Task Force to trace and recover billions of dollars in missing funds belonging to the collapsed crypto exchange FTX’s customers
