Bankruptcy Lawyers Uncover $2.2 Billion in Crypto Assets in FTX-Linked Wallets – Cryptopolitan
In a recent development, bankruptcy attorneys investigating the FTX cryptocurrency exchange have discovered a significant lack of fiat bank accounts and crypto-hot wallets linked to FTX.com and FTX.US. On the positive side, however, wallets associated 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 brought 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 in cryptocurrency assets linked to the exchange. Of this total amount, however, only $694 million represents liquid currencies such as stablecoin, Bitcoin or Ethereum. This has caused concern among investors and experts regarding the stock exchange’s financial status.
According to a press release, the lawyers also found accounts receivable worth $385 million, along with significant claims against Alameda Research and other related parties. It was revealed that Alameda Research had borrowed a net amount of $9.3 billion from wallets and accounts on FTX.com at the time of the petition.
FTX.US, the American branch of the exchange, also indicated a lack of assets, with only $191 million of total assets placed in wallets linked to the crypto exchange. The branch also reported $28 million in trade receivables and $155 million in related party receivables. In addition, 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, Acting CEO and Chief Restructuring Officer of FTX Debtors expressed the difficulty of recovering the assets, saying, “It has taken a tremendous effort to get this far. The exchange’s assets were very mixed up, and their books and records are incomplete and in many cases completely 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: $6.1 billion 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 $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.
Previously, the CEO of FTX had confirmed the discovery of $202 million in cryptocurrency held at Alameda, $125 million in stablecoins and $57 million in altcoins held in subsidiaries. This information has been made public to ensure transparency for stakeholders and the public, providing near-simultaneous access to new information.
The discovery of these assets brings 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 mixed nature of the exchange’s assets and incomplete records.
Overall, the recovery of $6.1 billion worth of assets by 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 attorneys has raised concerns about the exchange’s financial health. However, the subsequent discovery of $6.1 billion worth of assets by debtors has brought some relief to investors and traders.
