Key points to remember
- FTX’s new management has located over $5 billion in liquid assets.
- These include cash, liquid cryptocurrencies and liquid investment securities.
- The sum does not include the $425 million held by the Bahamian Securities Commission, nor the $490 million recently seized by the Department of Justice from one of Sam Bankman-Fried’s holding companies.
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Under John Ray, FTX has located over $5 billion in liquid assets tied to the business, including cash, liquid cryptocurrencies, and liquid stocks.
Location of funds
FTX’s new management team has been hard at work.
An attorney representing the former crypto exchange, Adam Landis, told a hearing today that FTX has recovered over $5 billion in various assets.
“We have located over $5 billion in cash, liquid cryptocurrency and liquid investment securities measured at the date value of the petition,” said Landis, who works as an attorney at Sullivan & Cromwell. “(It) simply places no value on the 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 significantly affecting the market. token.”
In other words, the $5 billion figure most likely excludes Alameda Research Positions in tokens such as SRM, FIDA, MAPS and OXY. The trading firm had previously assigned these holdings high valuations on its balance sheet despite its inability to offload the tokens without causing their respective markets to crash.
In addition to the $5 billion in liquid assets recovered by FTX, $425 million is currently held by the Bahamas Securities Commission, and more than $490 million was seized by the Justice Department on Monday of one of Sam Bankman-Fried’s holding companies. The DOJ is also investigating the identity of hacker FTX, who stole at least $372 million of the platform on November 12 as it collapsed.
It is still unclear how much FTX actually owes its creditors. The company said in its initial bankruptcy filings that the hole in its balance sheet was $1 billion to $10 billion.
Disclaimer: At the time of writing this article, the author of this article owned BTC, ETH, and several other crypto assets.
