25 February, 2024

SBF’s FTX Recovers $5B, Plans to Sell $4.6B in Non-Strategic Investments: Attorney

1 year ago

21 Nov, 2023

Sam Bankman-Fried’s (SBF) now bankrupt FTX exchange was valued at $32 billion just over a year ago. Reportedly losing $8 billion in customer funds, FTX exchange has reportedly recovered $5 billion in liquid assets. 

FTX attorney, Andy Dietderich, told the U.S. Bankruptcy Judge, John Dorsey, in a recent Delaware hearing,

we have located over $5 billion of cash, liquid cryptocurrency and liquid investment securities.

FTX is planning to sell nonstrategic investments having a book value of $4.6 billion, per Dietderich. But Dietderich clarifies the $5 billion recovered funds do not account for assets seized by the Securities Commission of the Bahamas.

As per an estimation by FTX’s attorney, the seized assets total to a mere $170 million. But Bahamian authorities calculate the seized assets to be $3.5 billion. The seized assets mostly include “FTX’s proprietary and illiquid FTT token,” per Dietderich.

The Alameda assets’ receiving wallet has reportedly received 30 million $USDC from ‘Alameda Research 25.’ The current holding of the wallet is reported to be $167 million assets. While $BIT holding is of 100 million or $46.6 million, $USDT balance is 41 million, 31.8 million in $USDC, and 17,177 or $24 million in $ETH.

Sharing the insight, Lookonchain tweets:

The sales of FTX’s affiliates, LedgerX, Embed, FTX Japan, and FTX Europe, is approved by Dorsey to raise funds for customers. But the U.S. Trustee did not like the idea of selling the FTX affiliates.

FTX has also requested Dorsey to allow keeping the details of 9 million FTX customers’ names secret. FTX cites compliance to privacy laws as a reason along with identity theft prevention for concealing customer names. Dorsey allowed keeping customer names hidden only for three months, as opposed to six months FTX requested.

Per FTX lawyer, apart from selling affiliates, FTX is also about to end its 19-year sponsorship deal worth $135 million with the NBA’s Miami Heat. A 7-year League of Legends deal worth $89 million deal will also reportedly end.