New on collapse Ftx: the consultants of the company they found more than 5 billion dollars in cash, cryptocurrencies and liquid investment securities – not counting an additional $425 million in cryptocurrencies held by the Securities Commission of the Bahamas – which could be sold to help repay creditors engulfed by the bankruptcy of the crypto asset trading platform founded by Sam Bankman-Friedha. This was reported by the Bloomberg agency citing the documents filed in the court of Wilmington (Delaware) by the company's lawyer Andrew G. Dietderich. That's great news for FTX clients even though the figure involves "illiquid holdings in cryptocurrency tokens, too large to be sold without substantially affecting the market," added another firm attorney.
Collapse Ftx news: the total recovered increases but still insufficient
The announcement significantly increases the total recovered by FTX after filing for bankruptcy last year November. The cryptocurrency exchange was valued at $32 billion but imploded following reports of financial improprieties, which ultimately sparked criminal and regulatory investigations, culminating in thearrest of the founder.
The total amount that the company accused of "the most epic fraud in history" owes its creditors is not yet clear, but it is certainly still missing a tidy sum of what it owes to customers, the lawyer said adding that the company is working to monetize non-strategic investments with a book value of $4,6 billion, although i accounting books of the company have been described as “unreliable”.
The new CEO of Ftx, John J. Ray, recently stated "that at least $8 billion in customer assets went undisclosed in the 'worst' corporate audit case I've ever seen."
Ftx errors
Il collapse of Ftx it has been linked to, among other things, an inability to properly value illiquid assets in the market. Company executives, including Bankman-Fried and the CEO of Alameda Research Caroline Ellison, they borrowed the FTT tokens issued by Ftx. Alameda controlled the vast majority of FTT coins in circulation, similar to those of a publicly traded company, and could not have liquidated its position at full book value.
