In a recent development, bankruptcy lawyers investigating the FTX cryptocurrency exchange have discovered a significant shortfall in fiat bank accounts and crypto hot wallets linked to FTX.com and FTX.US. However, on the positive side, wallets affiliated with the exchange have revealed the discovery of approximately $2.2 billion worth of assets. This discovery has raised concerns about FTX’s financial status but has also provided some relief to investors and traders.
FTX Lawyers Rush to Recover Assets: Only $694M Liquid Out of $2.2B
In the ongoing legal battle surrounding the exchange, lawyers have reportedly discovered over $2.2 billion worth of cryptocurrency assets linked to the exchange. However, out of this total amount, only $694 million represent liquid currencies such as stablecoin, Bitcoin, or Ethereum. This has raised concerns among investors and experts regarding the financial status of the exchange.
According to a press release, the lawyers also found customer receivables worth $385 million, along with considerable claims against Alameda Research and other linked parties. It was revealed that Alameda Research had borrowed a net amount of $9.3 billion from the wallets and accounts hosted on FTX.com at the time of the petition.
FTX.US, the American branch of the exchange, also indicated a deficiency in assets, with only $191 million of total assets housed in the wallets related to the crypto exchange. The branch also reported $28 million in customer receivables and $155 million in related party receivables. Additionally, it was revealed that FTX.US owes a net payable amount of $107 million to Alameda Research.
Difficulty in Recovering the Assets
John J. Ray III, the acting CEO, and Chief Restructuring Officer of the FTX Debtors expressed the difficulty in recovering the assets, stating, “It has taken a huge effort to get this far. The exchanges’ assets were highly commingled, and their books and records are incomplete and, in many cases, totally absent.”
The discovery of over $2.2 billion in digital assets linked to FTX is likely to intensify the regulatory scrutiny facing the cryptocurrency industry. While some experts believe that increased regulation could promote greater transparency and accountability among cryptocurrency companies, others warn that it could stifle innovation and hinder the industry’s growth and development.
FTX Assets Recovered: $6.1B Worth of Assets Discovered by Debtors
Following the discovery of over $2.2 billion in digital assets linked to the FTX exchange, the debtors have reportedly recovered a total of $6.1 billion worth of assets. The total liquid assets discovered by the debtors have increased from $5.5 billion due to a change in spot price and the inclusion of newer funds.
Earlier, the CEO of FTX had confirmed the finding of $202 million of cryptocurrency held at Alameda, $125 million in stablecoins, and $57 million of altcoins held at subsidiaries. This information has been made public to ensure transparency for stakeholders and the public, allowing nearly concurrent access to emerging information.
The discovery of these assets provides some relief to investors and traders who were concerned about the financial health of the exchange after the legal battle began. However, the recovery of the assets may take some time due to the highly commingled nature of the exchange’s assets and incomplete records.
Overall, the recovery of $6.1 billion worth of assets by the debtors is a positive development for the cryptocurrency industry, and it remains to be seen how this will affect the future of the FTX exchange and the regulatory landscape of the industry as a whole.
Conclusion
The discovery of $2.2 billion worth of digital assets linked to the FTX exchange by bankruptcy lawyers has raised concerns about the financial health of the exchange. However, the subsequent discovery of $6.1 billion worth of assets by the debtors has provided some relief to investors and traders.
