Key Takeaways
- The brand new FTX administration has situated over $5 billion in liquid property.
- These embrace money, liquid cryptocurrencies, and liquid funding securities.
- The sum doesn’t embrace the $425 million being held by the Securities Fee within the Bahamas, nor the $490 million just lately seized by the Division of Justice from certainly one of Sam Bankman-Fried’s holding firms.
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Beneath John Ray, FTX has situated over $5 billion of company-related liquid property—together with money, liquid cryptocurrencies, and liquid shares.
Finding the Funds
The brand new administration workforce at FTX has been laborious at work.
A lawyer representing the defunct crypto change, Adam Landis, declared throughout a listening to right now that FTX had recovered over $5 billion in numerous property.
“We’ve got situated over $5 billion of money, liquid cryptocurrency and liquid funding securities measured at petition date worth,” acknowledged Landis, who works as an legal professional at Sullivan & Cromwell. “[It] simply doesn’t ascribe any worth to holdings of dozens of illiquid cryptocurrency tokens, the place our holdings are so massive relative to the whole provide that our positions can’t be offered with out considerably affecting the marketplace for the token.”
In different phrases, the $5 billion determine most definitely excludes Alameda Analysis’s positions in tokens corresponding to SRM, FIDA, MAPS, and OXY. The buying and selling agency had beforehand given these holdings excessive valuations in its steadiness sheet regardless of its lack of ability to dump the tokens with out inflicting their respective markets to crash.
Apart from the $5 billion in liquid property recovered by FTX, $425 million is at present being held by the Securities Fee of the Bahamas, and over $490 million was seized by the Division of Justice on Monday from certainly one of Sam Bankman-Fried’s holding firms. The DOJ can be investigating the id of the FTX hacker, who stole at the least $372 million from the platform on November 12 because it was collapsing.
It’s nonetheless unclear how a lot FTX really owes its collectors. The corporate indicated in its preliminary chapter filings that the outlet in its steadiness sheet was anyplace $1 billion and $10 billion.
Disclaimer: On the time of writing, the writer of this piece owned BTC, ETH, and a number of other different crypto property.