The new management of FTX has retrieved over $5 billion in cash and liquid cryptocurrencies from the Securities Commission of the Bahamas. This is more than double the amount that had been seized from the exchange in December 2022.
Adam Landis, FTX’s lead attorney 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 were seized by the Securities Commission of the Bahamas consisted mainly of FTT tokens with a total market capitalization of $425 million, but these are not counted among newly retrieved assets as well.
In November, a court filing stated FTX Trading LTD owes over $3 billion to its top 50 creditors with an average debt per creditor amounting to more than $100 million. As per their fiftieth-largest creditor owed 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,” said Landis. “It bought planes, houses, threw parties, made political donations. It made personal loans to its founders.”
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,” he added. “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
Compiled by Coinbold