FTX Says It Has Recovered Over $5B But Extent Of Customer Losses Unknown

FTX Says It Has Recovered Over $5B But Extent Of Customer Losses Unknown

FTX has recovered more than $5 billion in cash and other liquid assets but the amount of customer losses is yet to be ascertained, an attorney for the troubled cryptocurrency exchange told a U.S. bankruptcy court.

What Happened: “We have located over $5 billion of cash, liquid cryptocurrency and liquid investment securities,” said FTX attorney Andy Dietderich on Wednesday, reported Reuters.

Dietderich also said that FTX FTT/USD plans to sell nonstrategic investments with a book value of $4.6 billion.

The lawyer said that the $5 billion recovered does not include assets seized by Bahamian regulators, reported Reuters. 

See Also: Best FTX Alternatives: How To Keep Your Crypto Safe

Why It Matters: The attorney said the company’s legal team is still working to come up with accurate internal records and that the extent of money owed to customers remains unknown, according to Reuters.

The U.S. Commodities Futures Trading Commission reportedly puts missing customer funds at more than $8 billion.

FTX, founded by Sam Bankman-Fried, could raise more funds through the sale of assets after the bankruptcy court approves. The affiliates that could be put on the market include LedgerX, Embed, FTX Japan, and FTX Europe, according to the report.

Government watchdog, the U.S. Trustee, has opposed selling the affiliates before the probe into FTX fraud is completed.

Billionaire investor Peter Thiel, NFT quarterback Tom Brady, and Kevin O’Leary are some of the prominent investors in FTX, a recent filing has revealed. 

Bankman-Fried has pled not guilty to eight charges related to the collapse of FTX, the exchange that facilitated the trade of Bitcoin BTC/USD and Ethereum ETH/USD, and other digital assets.

Read Next: FTX Token Skyrockets 40%, Surpassing Bitcoin and Ethereum Gains — Sets Off Short Squeeze

Posted In: CryptocurrencyNewsLegalTop StoriesMarketsMediabankruptcyFTXSam Bankman-Fried

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