Key points to remember:
- FTX lawyers tell bankruptcy judge $5 billion in liquid assets recovered
- There has been no update regarding the total amount of funds FTX owes clients
- Some social media users believe SBF is helping to recover funds to get a lighter prison sentence
FTX recovered $5 billion in liquid assets
Wednesday, CNBC reported that the total amount of funds that FTX has managed to recover during the bankruptcy process so far has risen to $5 billion. That’s $4 billion more than the initial $1 billion that new FTX CEO John J. Ray said the company controlled in December.
It’s one of the few silver linings in the wake of FTX’s collapse, which saw former CEO Sam Bankman-Fried face eight federal charges, including wire fraud, securities fraud and money laundering.
According to FTX attorney Adam Landis, the $5 billion total does not include any illiquid assets, such as $425 million in crypto held by the Bahamas Securities Commission.
The exact number of creditors that FTX owes money to, as well as the total amount owed, is still not entirely clear. In December, Ray estimated that at least $8 billion was owed to more than 100,000 customers.
Some users on social media have expressed their suspicions about the suddenly recovered funds. For example, Adam Cochran, General Partner of Cinneamhain Ventures underline on Twitter that the 5 billion dollars recovered is very curious, because it was the same amount of money that SBF wanted to “buy on Twitter”.
“He hijacked customer funds to buy on Twitter, and is now helping to ‘magically get it back’ to get out of jail,” Cochran said of the recovered funds.
David is a crypto enthusiast and personal finance expert. He has created numerous publications for different platforms. He loves exploring new things, and that’s how he discovered blockchain in the first place.