FTX Recovers $7 Billion in Liquid Assets

Defunct cryptocurrency exchange FTX has recovered more than $7 billion worth of liquid assets up-to-date, and according to FTX CEO John Ray, the exchange continues to seek additional assets.

Despite ongoing efforts towards recovering more assets, Ray highlights the obstacles towards achieving that being the extensive commingling of funds. Made up of several affiliates, the FTX Debtors currently estimate that nearly $8.7 billion is the value of misappropriated customer assets, and $6.4 billion of that sum was in fiat and stablecoins.

FTX did not highlight the distinction between the two in its accounting. The FTX Debtors’ second interim report alleges that the former FTX leadership “did not commingle and misuse customer deposits by accident” and that the leadership have effectively hidden its actions “with the assistance of a senior FTX Group attorney. As a result:

“Notwithstanding extensive work by experts in forensic accounting, asset tracing and recovery, and blockchain analytics, among other areas, it is extremely challenging to trace substantial assets of the Debtors to any particular source of funding, or to differentiate between the FTX Group’s operating funds and deposits made by its customers.”

Sources:

https://cointelegraph.com/news/ftx-recovered-7b-assets-has-almost-2b-to-go-to-cover-misappropriations

https://unchainedcrypto.com/ftx-recovers-7-billion-in-assets-in-liquid-assets/

https://watcher.guru/news/ftx-recovers-7-billion-as-new-investigative-report-is-released

https://www.prnewswire.com/news-releases/ftx-debtors-release-second-investigative-report-301863419.html