- The rumored $425 million being held by Bahamian officials is not included in this sum.
- The FTX scandal was the largest in the history of the cryptocurrency industry.
Reports from legal counsel indicate that FTX has recovered approximately $5 billion in cash and cryptocurrency. As a result, this finding has a substantial effect on the amount of assets that may be recovered from the company’s original bankruptcy filing in November of last year.
The rumored $425 million being held by Bahamian officials is not included in this sum. On the other hand, it’s good news for those who stand to benefit from the bankruptcy’s ultimate asset recovery.
Devastating Bankruptcy Procedures
The FTX scandal was the largest in the history of the cryptocurrency industry. Over the course of 2022, the cryptocurrency exchange platform had established itself as one of the industry leaders. This was previous to dissolving when fraudulent actions were uncovered inside the company.
The bankruptcy procedures have been devastating on their own. And former CEO Sam Bankman-Fried’s involvement in his own legal struggle hasn’t helped matters. The American branch of the corporation has been at odds with Bahamian authorities, and it is unclear when, if ever, consumer monies would be recouped.
As for the latter, it seems we may finally have some clarification. According to the company’s lawyers, who testified at today’s bankruptcy court, FTX has recouped more than $5 billion in cash and cryptocurrency.
Attorney Adam Landis specifically addressed the discovery on behalf of FTX. It is said that “We have located over $5 billion in cash, liquid cryptocurrency, and liquid investment securities measured at petition date value.”
Landis further added:
“[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.”
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