Key Takeaways
- The brand new FTX administration has positioned over $5 billion in liquid belongings.
- These embrace money, liquid cryptocurrencies, and liquid funding securities.
- The sum doesn’t embrace the $425 million being held by the Securities Fee within the Bahamas, nor the $490 million not too long ago seized by the Division of Justice from considered one of Sam Bankman-Fried’s holding firms.
Share this text
Beneath John Ray, FTX has positioned over $5 billion of company-related liquid belongings—together with money, liquid cryptocurrencies, and liquid shares.
Finding the Funds
The brand new administration group at FTX has been exhausting at work.
A lawyer representing the defunct crypto alternate, Adam Landis, declared throughout a listening to right now that FTX had recovered over $5 billion in varied belongings.
“We have now positioned over $5 billion of money, liquid cryptocurrency and liquid funding securities measured at petition date worth,” said Landis, who works as an lawyer at Sullivan & Cromwell. “[It] simply doesn’t ascribe any worth to holdings of dozens of illiquid cryptocurrency tokens, the place our holdings are so giant relative to the whole provide that our positions can’t be offered with out considerably affecting the marketplace for the token.”
In different phrases, the $5 billion determine most probably excludes Alameda Analysis’s positions in tokens equivalent to SRM, FIDA, MAPS, and OXY. The buying and selling agency had beforehand given these holdings excessive valuations in its steadiness sheet regardless of its incapacity to dump the tokens with out inflicting their respective markets to crash.
In addition to the $5 billion in liquid belongings recovered by FTX, $425 million is presently being held by the Securities Fee of the Bahamas, and over $490 million was seized by the Division of Justice on Monday from considered one of Sam Bankman-Fried’s holding firms. The DOJ can be investigating the id of the FTX hacker, who stole at the very least $372 million from the platform on November 12 because it was collapsing.
It’s nonetheless unclear how a lot FTX truly owes its collectors. The corporate indicated in its preliminary chapter filings that the opening in its steadiness sheet was wherever $1 billion and $10 billion.
Disclaimer: On the time of writing, the writer of this piece owned BTC, ETH, and several other different crypto belongings.
