In a recent report to its creditors, bankrupt cryptocurrency exchange FTX stated that approximately $415 million in cryptocurrency had been stolen in hacks.
FTX reported that it had recovered more than $5 billion in cryptocurrency, cash, and liquid securities, but that significant shortfalls remained at both its international and US crypto exchanges. FTX blamed some of the shortfall on hacks, claiming that $323 million in crypto had been stolen from FTX's international exchange and $90 million had been stolen from its US exchange since the company declared bankruptcy on November 11.
Indicted founder Sam Bankman-Fried later challenged aspects of the company's report in a blog post.
Bankman-Fried, who has been accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund, Alameda Research, pushed back late Tuesday against FTX's calculations, saying the company's lawyers at Sullivan & Cromwell had presented a "extremely misleading" picture of the company's finances.
According to Bankman-Fried, FTX has more than enough money to repay customers in the United States, who he estimates are owed between $181 million and $497 million based on his "best guess." Since stepping down as CEO in November, Bankman-Fried has not had access to FTX records.
A Sullivan and Cromwell spokesperson declined to comment. In a recent court filing, the firm's attorneys stated that they have rejected Bankman-efforts Fried's to remain involved in the company's bankruptcy proceedings.
Bankman-Fried has pleaded not guilty to the charges of fraud, and his trial is set for October.
FTX did not provide an estimate of the amount owed to FTX's US or international customers, and it did not respond to questions about Bankman-blog Fried's post immediately.
On Tuesday, FTX provided additional information about its recovery efforts, stating that it had recovered $1.7 billion in cash, $3.5 billion in liquid cryptocurrency, and $300 million in liquid securities.
"We are making progress in our efforts to maximize recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information," Ray said in a statement.
Based on crypto prices on November 11, 2022, the recovered crypto assets include $685 million in Solana, $529 million in FTX's proprietary FTT token, and $268 million in bitcoin. Solana, which Bankman-Fried praised, lost the majority of its value by 2022.
FTX discovered a November asset seizure by the Securities Commission of the Bahamas during its initial investigation into system hacks, resulting in a dispute between FTX's U.S.-based bankruptcy team and Bahamian regulators.
The two parties reached an agreement in January, and Ray announced on Tuesday that the Bahamian government was holding $426 million for creditors.
During a Tuesday event at the Atlantic Council in Washington, Bahamas Prime Minister Philip Davis mentioned the dispute, saying Ray's team had "come around" and accepted that the Bahamian asset seizure "was appropriate and perhaps has saved the day for many of the investors in FTX."
(Source:www.reuters.com)
FTX reported that it had recovered more than $5 billion in cryptocurrency, cash, and liquid securities, but that significant shortfalls remained at both its international and US crypto exchanges. FTX blamed some of the shortfall on hacks, claiming that $323 million in crypto had been stolen from FTX's international exchange and $90 million had been stolen from its US exchange since the company declared bankruptcy on November 11.
Indicted founder Sam Bankman-Fried later challenged aspects of the company's report in a blog post.
Bankman-Fried, who has been accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund, Alameda Research, pushed back late Tuesday against FTX's calculations, saying the company's lawyers at Sullivan & Cromwell had presented a "extremely misleading" picture of the company's finances.
According to Bankman-Fried, FTX has more than enough money to repay customers in the United States, who he estimates are owed between $181 million and $497 million based on his "best guess." Since stepping down as CEO in November, Bankman-Fried has not had access to FTX records.
A Sullivan and Cromwell spokesperson declined to comment. In a recent court filing, the firm's attorneys stated that they have rejected Bankman-efforts Fried's to remain involved in the company's bankruptcy proceedings.
Bankman-Fried has pleaded not guilty to the charges of fraud, and his trial is set for October.
FTX did not provide an estimate of the amount owed to FTX's US or international customers, and it did not respond to questions about Bankman-blog Fried's post immediately.
On Tuesday, FTX provided additional information about its recovery efforts, stating that it had recovered $1.7 billion in cash, $3.5 billion in liquid cryptocurrency, and $300 million in liquid securities.
"We are making progress in our efforts to maximize recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information," Ray said in a statement.
Based on crypto prices on November 11, 2022, the recovered crypto assets include $685 million in Solana, $529 million in FTX's proprietary FTT token, and $268 million in bitcoin. Solana, which Bankman-Fried praised, lost the majority of its value by 2022.
FTX discovered a November asset seizure by the Securities Commission of the Bahamas during its initial investigation into system hacks, resulting in a dispute between FTX's U.S.-based bankruptcy team and Bahamian regulators.
The two parties reached an agreement in January, and Ray announced on Tuesday that the Bahamian government was holding $426 million for creditors.
During a Tuesday event at the Atlantic Council in Washington, Bahamas Prime Minister Philip Davis mentioned the dispute, saying Ray's team had "come around" and accepted that the Bahamian asset seizure "was appropriate and perhaps has saved the day for many of the investors in FTX."
(Source:www.reuters.com)
