Over $5 Billion In Assets Are Recovered From The Collapsed Crypto Powerhouse.
A counsel for the company claims that the defunct crypto trading FTX has discovered more than $5 billion (£4.1 billion) in assets. A US bankruptcy court was informed on Wednesday, nevertheless, that it is yet unknown how much money clients have lost.
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The $32 billion firm filed for protection from bankruptcy in November, and US authorities charged Bankman-Fried with planning an “epic” scam. The company had been valued at that point.
At the beginning of the meeting on Wednesday, Andy Dietderich, a lawyer representing FTX, said to US Bankruptcy Judge John Dorsey in Delaware, “We have identified almost $5 billion in cash, liquid cryptocurrencies, and liquid investment assets.”
According to Andy Dietderich, an attorney representing FTX, “We have discovered almost 5 billion dollars in cash, liquid cryptocurrency, and liquid financial assets” in Delaware.
The Securities Commission of the Bahamas, where FTX had its headquarters and where Mr. Bankman-Fried was residing at the time of his detention seized some assets, according to Mr. Dietderich, who claimed that the sums recovered do not include those.
The proceedings have not revealed the names of the majority of FTX’s shareholders and clients who have suffered losses.
Tom Brady, his ex-wife Gisele Bündchen, and New England Patriots owner Robert Kraft all were addressed in court documents, though.
The 30-year-old was detained in the Bahamas in December and then deported to the US. He is charged with carrying out “one of the largest financial scams in US history.”
How Much of the Customer’s Money is Missing?
On November 11, FTX, which had a $32 billion market value a year prior, filed for bankruptcy protection. $8 billion in client cash are thought to have gone missing.
Federal US prosecutors accused Mr. Bankman-Fried of using money from FTX clients without authorization to settle his company Alameda Research’s bills and make other investments. As of now, Sam Bankman-Fried, the former CEO of FTX, is charged by prosecutors with planning an “epic” scam that may have cost investors, clients, and lenders billions of dollars. A claim that Mr. Bankman-Fried defrauded investors have been met by his plea of not guilty.
Eight felony proceedings, involving wire fraud, financial crimes, and crimes related to campaign funding, were made public by the prosecution in December. Additionally, claims have been made against Mr. Bankman-Fried by financial regulators.
The former CEO of the FTX Has Also Been Framed in the Fraud Case.
In connection with their alleged participation in the demise of the company, Caroline Ellison, the former CEO of Alameda, and FTX co-founder Gary Wang were also arrested. They both reportedly cooperated with the inquiry, according to authorities.
Mr. Bankman-Fried was granted $250 million in bond and released from custody at the end of December, with the restriction that he remains at his parents’ house in California.
Prior to his arrest, he spoke with BBC News and said the following: “I didn’t purposefully engage in fraud. I don’t believe I defrauded anyone. All of this was something I wanted to avoid. Definitely not as proficient as I had believed I was.”
We will see what happens, and the real motives as well as real orchestrators of the fraud in the near future.