FTX Identified Approx. $5.5 Billion of Liquid Assets

FTX Trading Ltd. and its affiliated debtors, announced on January 17th, 2023, that their top level management and advisors met with the members of and advisors to the Official Committee of Unsecured Creditors (UCC) in their Chapter 11 bankruptcy.

According to FTX, in a presentation they identified a total of approximately $5.5 Billion of liquid assets that comprised $1.7 Billion of cash, $3.5 Billion of crypto assets and $0.3 Billion of securities.

In their presentation, FTX also provided the details to the assets and property of the FTX including cash digital assets, investment securities, real estate, investments, businesses and other property.

It must be noted that all stakeholders are invited to review this presentation.

John J. Ray III, the Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors said “We are making important progress in our efforts to maximize recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information”.

“We ask our stakeholders to understand that this information is still preliminary and subject to change. We will provide additional information as soon as we are able to do so,” he further added.

FTX also noted that approximately $1.6 Billion of digital assets with FTX, $323 Million out of which was subject to unauthorized third-party transfers, $426 Million to cold storage under the control of The Securities Commission of the Bahamas, $742 Million is in cold storage under the control of FTX, and $121 Million is pending transfer to cold storage under the control of the FTX.

However, the FTX continues to attempt to secure assets that may be associated with the exchanges. Also, FTX is tracing digital assets back to it if possible.

The officials also claimed that Bankman-Fried siphoned Billions of Dollars in customer funds from his crypto exchange. He used the fund to make political contributions, finance trading at Alameda and then bought luxurious real estate in the Bahamas. The two unknown officials raised their concerns.

According to public charging documents, Gary Wang and Nishad Singh, the associates of Bankman-Fried and who worked on the exchange’s coding are named. While the other unnamed person is described as being a high-level Alameda official, which potentially refers to Alameda’s CEO Caroline Ellison.

The paper stated that Bankman-Fried was gravely concerned, but said an equity raise and a climb in cryptocurrency price could rectify the problem.