Recovered assets equivalent to 660 billion yen
Attorneys for the bankrupt cryptocurrency exchange FTX announced on the 11th that they had identified and recovered approximately 660 billion yen (approximately $5 billion) of FTX assets at a Delaware bankruptcy court hearing. The assets are said to consist of cash, highly liquid cryptocurrencies and investment securities.
Since the beginning of January, the U.S. Department of Justice has seized more than 55 million shares of Robinhood and $2.7 billion worth of US dollars from former CEO Sam Bankman-Fried of the bankrupt FTX. has just become clear. The 55 million shares represent a market value of ?60 billion ($456 million).
Lawyers for FTX declined to say whether the newly identified nearly $5 billion in assets include Robinhood shares seized by the U.S. Department of Justice.
It does not include about ?56 billion ($425 million) of cryptocurrency seized by the Bahamas Securities Commission.
FTX interim CEO John J. Ray previously said at least ?1 trillion ($8 billion) of client assets were missing. The fact that about 660 billion yen was secured this time can be considered a step toward improving the situation.
FTX attorney Adam Dietderich explained in court:
We are currently in a complex effort to reproduce the value of the property as of the filing date for all of our clients.
Instead of the incomplete and unreliable financial statements of the past, they are creating financial statements from scratch using their general LEDGER and banking records. Only after this is completed will we be in a position to accurately describe the financial position of the debtor (FTX).
FTX’s lawyers explain that “no illiquid cryptocurrencies are included,” suggesting that the newly secured assets will not include FTT tokens.
FTT token is a unique token of the exchange issued by FTX. Among the assets held by FTX group company Alameda Research, the fact that this token with low liquidity was the largest proportion was regarded as a problem, and it was one of the reasons for the bankruptcy of FTX.
: Severe shock in the virtual currency market, summary of Alameda shock and FTX turmoil
What is FTX
A cryptocurrency exchange led by Sam Bankman-Fried (SBF). Since its establishment in 2019, it has rapidly made a name for itself and has grown into a major exchange after Binance, the largest exchange in the industry. It went bankrupt after that and filed for bankruptcy in the United States in November.
Customer Directory and Business Sale
At the hearing, Judge John Dorsey also decided that FTX’s customer and creditor names would remain private for at least the next three months due to privacy concerns.
Also, Kevin Kofsky, a partner at investment bank Perella Weinberg, which FTX signed in bankruptcy, said FTX could sell some of its exchanges during bankruptcy proceedings.
Kowski prioritized considering the sale of LedgerX, Embed, FTX Japan and FTX Europe, which are relatively independent from FTX and could lose value if sold later. I said there is FTX has already filed a petition in bankruptcy court to sell the four businesses.
: FTX filed for sale of 4 businesses including Japanese virtual currency exchange
In addition, FTX’s Japanese business FTX Japan announced at the end of December that it plans to resume withdrawals in mid-February 2023 for customer assets that are currently suspended.
: FTX Japan to return customer assets by mid-February next year
FTX Secures 660 Billion Yen in Assets appeared first on Our Bitcoin News.
