FTX Recovers ‘Over $5 bn’ In Assets
Prominent crypto exchange FTX had entered bankruptcy as concerns over its financial health led to a surge in withdrawals and a plunge in the value of its native FTT token.
According to authorities, FTX went from being one of the most respected and trusted parts of the crypto industry to a bankrupt disgrace that lost more than $8 billion of its customers’ money.
FTX’s founder, Sam Bankman-Fried, stepped down as CEO and was replaced by John J. Ray III.
Bitcoin hit a two-year low as the cryptocurrency market takes a bruising following the collapse of major exchange FTX.
There’s more to this story as well. During a hearing on 11th Jan, a bankruptcy attorney stated that crypto exchange FTX had recovered more than $5 billion in various assets, not including another $425 million in crypto held by the Securities Commission of the Bahamas.
“We have located over $5 billion in cash, liquid cryptocurrency, and liquid investment securities measured at petition date value. [It] simply does not ascribe any value to holdings of dozens of illiquid cryptocurrency tokens, where our holdings are so large relative to total supply that our positions cannot be sold without significantly affecting the market for the token,” said Sullivan & Cromwell attorney Adam Landis on behalf of FTX.
(With inputs from Shikha Singh)
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