FTX Recovered $7.3 bn In Assets
By Kapil Rajyaguru
Cryptocurrency exchange FTX may be considering restarting in the future, according to the legal team behind the debtors.
In an April 12 hearing in the United States Bankruptcy Court for the District of Delaware, lawyers with Sullivan & Cromwell representing FTX said the crypto firm had recovered roughly $7.3 billion in liquid assets.
A March filing from the debtors reported the four FTX company silos had roughly $4.8 billion in scheduled assets as of November 2022, with an investigation into the assets ongoing.
According to the legal team, FTX will also consider restarting its crypto exchange operations sometime in the second quarter of 2024 — suggesting a reboot as early as April. FTX CEO John
Ray was reportedly mulling reviving the bankrupt exchange in a January interview.
When asked about the funding to cover the cost of rebooting the crypto exchange, FTX’s lawyer stated that some of the funds belonging to creditors may be used for this purpose. Other funding sources could include fundraising from third-party investors looking to back such a project.
The price of the FTX Token surged from $1.32 to $2.80 at roughly the same time lawyers announced the potential reboot of the exchange — an increase of more than 112%. The token price had largely stayed between $1 and $2 since the firm’s bankruptcy filing.
At the same hearing, the bankruptcy judge denied a motion that would have allowed the court to prioritize reimbursing former FTX CEO Sam “SBF” Bankman-Fried’s legal fees. He left the door open for SBF to present evidence to the court in the future regarding the motion.
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