The attorney for bankrupt cryptocurrency exchange FTX revealed on Wednesday at a Delaware bankruptcy court hearing that the company has recovered more than $7.3 billion in cash and accessible crypto assets, an increase of more than $800 million since January.
After months of work spent gathering resources and determining what went wrong under the direction of Sam Bankman-Fried, the convicted ex-founder, FTX attorney Andy Dietderich said the company was now beginning to think about its future. Bankman-Fried has pleaded not guilty.
Dietderich said that the things have settled down and the dumpster fire has been put out. He said that FTX has profited from a recent increase in crypto prices. Based on cryptocurrency values from November 2022, when it declared bankruptcy after traders withdrew $6 billion from the marketplace in three days and rival exchange Binance abandoned a rescue arrangement, its total recovery would be worth $6.2 billion.
FTX’s new CEO John Ray described the failed cryptocurrency exchange’s botched financial transfers and inadequate bookkeeping as a “complete failure” of controls.
FTX is debating possibilities with stakeholders regarding how to resume its cryptocurrency exchange and may decide in the current quarter, the attorney added. He did not go into much detail about what a reboot may entail for FTX customers whose crypto deposits were frozen during the bankruptcy proceedings.
Due to Japan’s somewhat strict cryptocurrency legislation, only FTX consumers in that country have been able to withdraw money thus far, he said.
FTX admitted that many specifics would need to be sorted out as creditors compete for their part of the company’s assets before filing that plan by July. Before the second quarter of 2024, FTX does not anticipate any Chapter 11 plan to be authorized.
Due to their involvement in the bankruptcy of the company, Bankman-Fried and several other company insiders have been charged with fraud. The former members of Bankman-Fried’s inner circle, in contrast to Bankman-Fried’s not-guilty plea, have pleaded guilty and volunteered to assist investigators.
