The crypto exchange FTX has been in the headlines for some time, as it was initially traded as a showcase project, but then crashed. The bankruptcy process has now uncovered five billion US dollars in cash that can be used to pay claims.
Cash and company holdings
The details of the discovery of the enormous financial resources come from FTX itself. The crypto exchange, through its legal counsel, had a notice made to the relevant bankruptcy court in Wilmington, Delaware. In addition to cash funds, primarily previously unknown company investments in the amount of 4.6 billion US dollars were identified. This does not include funds amounting to 425 million US dollars, which are currently being withheld by the authorities in the Bahamas.
It is not yet known whether the funds now traced will be sufficient to cover the outstanding claims against the crypto exchange. Prior to the insolvency, FTX had a total of 9 million customer accounts. It is unclear how high the respective book value was. Also unknown is how much money was embezzled from FTX. Estimates put the figure at around $10 billion.
Claims against FTX founder
FTX founder Sam Bankman-Fried is accused of misappropriating client funds. On Nov. 11 of last year, he had resigned as company president and filed for bankruptcy. The following month, he was arrested in the Bahamas at the instigation of the USA. However, he was released on $250 million bail and allowed to stay at his parents’ home.
Bankman-Fried was previously considered a shooting star on the fintech scene. He and the rise of his company had been reported in numerous trade publications. His fortune was at times estimated at $26 billion by Forbes and Bloomberg before the FTX bankruptcy. What punishment awaits Friedman is still open.
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