The bankrupt FTX exchange continues to generate newsworthy stories. Here is a summary of the latest news.
$5 billion found
FTX was able to recover $5 billion in liquid assets and cash, CNBC reported, citing company lawyers. How exactly they managed to get access to the funds, they do not say.
At the same time, the restructuring team gained access to “dozens of illiquid cryptocurrency tokens”, and their “stocks are so large compared to the total issue that they are unlikely to be sold without a significant impact on the market.”
In addition to this amount, at least another $ 3.5 billion of funds are frozen in the accounts of the Bahamas Securities Commission. The funds rescued from the raking paws of Bankman-Fried will be distributed among the clients and creditors of the exchange. Local FTX users will not have priority in receiving refunds. The Supreme Court of the Bahamas will decide on the further transfer of funds to the victims or the trustees of the exchange.
117 buyers for a dead man’s chest
Buyers have already been found for the good of the bankrupt exchange. From court documents, the media found out that at least 117 buyers are interested in buying divisions of the exchange.
FTX is morally ready to part ways with LedgerX, FTX Japan, FTX Europe and the Embed platform. It is these companies that are of the greatest interest to buyers, while requiring a lot of money to keep the business afloat.
LedgerX was interested in 56 buyers, Embed was interested in 50, FTX Japan and FTX Europe – 41 and 40, respectively. The Justice Department protested against the sale of FTX’s assets, given the criminal fraud case filed against the company’s top managers. However, representatives of FTX assure that the disputed property will not be sold.
In the meantime, Bankman-Fried’s defense is pleading not guilty, yet another former company executive has begun cooperating with prosecutors in a high-profile case. Former FTX CTO Nishad Singh, who has not been charged with anything, is ready to assist in the investigation. Such news does not bode well for the former CEO.
Last week, Sam Bankman-Fried refused to plead guilty. The prosecution’s case relies on allegations that Bankman-Fried and other FTX executives used the crypto exchange’s assets to fund a subsidiary of Alameda Research without the consent or knowledge of users or investors.
In addition, the prosecution alleges that he conspired to commit securities fraud, conspired to commit money laundering, and violated United States campaign finance laws. Bankman-Fried is alleged to have made donations on behalf of others to bypass the $25,000 annual campaign funding cap. The former crypto billionaire faces 115 years in prison on the charges.
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