FTX Has Recovered Over $5B in Assets: Bankruptcy Attorney Reports

FTX, a leading cryptocurrency exchange, has made a significant recovery of over $5 billion in assets, according to reports from a bankruptcy attorney.

The news comes as a major relief for the company, which has been dealing with financial difficulties in recent months. The recovery of such a large amount of assets is a testament to the resilience and determination of the FTX team, as well as the effectiveness of the legal strategies employed by the bankruptcy attorney.

It is still unclear how much is owed to customers, according to the attorney.

On December 20, 2022, FTX's new leadership claimed the company could find just over $1 billion of claims. There is still no clear picture of how much FTX owes its creditors. During the initial bankruptcy filing, management indicated a figure ranging from $1 billion to $10 billion.

Landis said Sam Bankman-Fried ordered his lieutenant, Gary Wang, to create a FTX backdoor through which Alameda could borrow money without permission. An additional $65 billion in credit was provided to the trading division by the former CEO.

The attorney, who has been working closely with FTX throughout the bankruptcy process, stated that the recovery was made possible through a combination of asset tracking and legal action. The team was able to locate and secure a significant amount of assets that had been previously thought to be lost or inaccessible.

This recovery is particularly noteworthy because it is one of the largest of its kind in the cryptocurrency industry. It demonstrates the potential for successful recoveries in the face of financial hardship, even in the highly volatile and ever-changing world of cryptocurrency.

Chief Financial Officer Mary Cilia estimated in December the company could complete that work by April. A March 15 deadline was set by Judge John Dorsey of the Delaware Bankruptcy Court in Wednesday's hearing. It is possible that there are as many as 9 million creditors, according to Brian Glueckstein, partner at Sullivan & Cromwell.

The Securities Commission of the Bahamas recently signed a cooperation agreement, which Landis described as "an important first step toward aligning incentives and maximizing joint recoveries."

"Whoever gets paid $1 for customers doesn't matter, as long as they receive it," Landis said. "A task force has been established along with the official committee of creditors and the Bahamas JPL in order to examine alternatives for selling or restructuring the international platform."

In conclusion, the recovery of over $5 billion in assets by FTX is a significant achievement that highlights the importance of effective legal strategies and asset tracking in the cryptocurrency industry. It is also a reminder of the resilience and determination of the companies in the industry to overcome financial difficulties and continue to thrive.