Daily Management Review

Lawyers of bankrupt FTX find $5bn for compensations


Attorneys for the defunct cryptocurrency exchange FTX claim to have found $5 billion worth of the company's liquid assets, including cash, cryptocurrencies, and investment products, allowing for the use of the proceeds to compensate the affected customers. FTX filed for bankruptcy in November 2022.

The attorneys presented their plea as part of the bankruptcy processes that the corporation is now going through in the Delaware court. The court had previously accepted its request to keep the identity of its clients confidential. The total amount that the business owes is not known yet.

FTX's assets were only worth $1 billion as of December 20, 2022, compared to over $30 billion at the beginning of the autumn.

The process of "monetising over 300 non-strategic investments worth approximately $4.6 billion," according to FTX's attorneys, is currently in progress. Authorities in the Bahamas, where FTX was established, have also frozen the company's accounts, which included roughly $425 million and were intended to be used for client payments.

source: ft.com