Crypto exchange FTX recovers $5 billion to pay off its creditors

He argued that the $5 billion recovered does not include assets seized by the Bahamas Securities and Exchange Commission, where Bankman-Fried was located.

FTX’s lawyer estimated the seized assets were worth just $170 million, while Bahamian authorities put the figure at $3.5 billion. The seized assets are largely made up of FTX’s illiquid proprietary FTT token, which is highly volatile in price, Dietderich said.

FTX’s legal team went to court on Wednesday to seek approval of procedures to sell subsidiaries LedgerX, Embed, FTX Japan and FTX Europe. FTX also wants approval from bankruptcy judge John Dorsey in Delaware to keep client names secret for at least six months.

FTX founder Sam Bankman-Fried, 30, was charged last month with two counts of wire fraud and six counts of conspiracy in Manhattan federal court for allegedly stealing client deposits to pay off debts from his hedge fund. , Alameda Research, and lying to investors about FTX’s financial condition. Bankman-Fried has pleaded not guilty.

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