Key Takeaways
- The brand new FTX administration has situated over $5 billion in liquid property.
- These embody money, liquid cryptocurrencies, and liquid funding securities.
- The sum doesn’t embody 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 corporations.
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Underneath John Ray, FTX has situated over $5 billion of company-related liquid property—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 this moment that FTX had recovered over $5 billion in varied property.
“We’ve got situated over $5 billion of money, liquid cryptocurrency and liquid funding securities measured at petition date worth,” acknowledged Landis, who works as an legal professional 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 overall 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 definitely excludes Alameda Analysis’s positions in tokens akin to SRM, FIDA, MAPS, and OXY. The buying and selling agency had beforehand given these holdings excessive valuations in its stability sheet regardless of its incapability to dump the tokens with out inflicting their respective markets to crash.
Moreover the $5 billion in liquid property 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 corporations. The DOJ can also be investigating the identification of the FTX hacker, who stole no less than $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 stability sheet was wherever $1 billion and $10 billion.
Disclaimer: On the time of writing, the creator of this piece owned BTC, ETH, and a number of other different crypto property.
