The bankrupt crypto exchange FTX managed to recover more than $7.3 billion in cash and liquid crypto assets, the company’s attorney said, Andy Dietderich, during a US bankruptcy court hearing in Delaware. This represents an increase of more than $800 million over the last estimates. Dietderich revealed that the company is beginning to consider his future after spending months collecting resources and identifying issues under the leadership of the indicted former founder Sam Bankman-Friedwho pleaded not guilty.
The scholarship crypto took advantage of the recent rise in cryptocurrency prices. Dietderich explained that the total recovery of FTX was reportedly valued at $6.2 billion based on cryptocurrency prices in November 2022, when the company filed for bankruptcy. Traders had withdrawn $6 billion from the platform in just three days, and the rival exchange Binance had abandoned a bailout deal. The new CEO of FTX, John Rayrevealed incorrect fund transfers and poor accounting within the exchange.
THE assets recovered were categorized:
- $2 billion in cash
- $4.3 billion in “Class A” cryptocurrencies
- $0.3 billion in securities
- $0.6 billion in settlements and investments receivable
The meaning and liquidity of “category A” remains to be defined for the moment.
FTX 2.0: the restart of the fallen exchange planned for 2024
While FTX looks to the future, the company discusses with stakeholders the options possible ways to restart the exchange. A decision on this could be taken during the current quarter., according to Dietderich. However, he provided few details on what a reboot might mean for FTX customers whose cryptocurrency deposits have been blocked. To date, only FTX customers in Japan have been able to withdraw funds, due to relatively strict cryptocurrency regulations there.
FTX is working on a preliminary Chapter 11 plan that would offer the company an exit strategy from bankruptcy. Dietderich mentioned that FTX intends to file the plan by July, but many details will need to be ironed out as creditors vie for their share of the company’s assets. FTX does not provide no Chapter 11 plan approval until Q2 2024.
To restart the platform, FTX would require significant capital, as the existing client interface had little to do with the movement of money behind the scenes. Dietderich said that “the app worked like a charm, but in reality it was a facade.”
Restarting the exchange could require outside funding or a sale of the exchange’s assets.
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