{"id":16598,"date":"2023-01-18T15:56:16","date_gmt":"2023-01-18T15:56:16","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ftx-discovers-5-5b-in-liquid-assets-debtors-explore-ways-to-maximize-recovery-via-potential-sale-of-subsidiaries-real-estate-bitcoin-news\/"},"modified":"2023-01-18T15:56:16","modified_gmt":"2023-01-18T15:56:16","slug":"ftx-discovers-5-5b-in-liquid-assets-debtors-explore-ways-to-maximize-recovery-via-potential-sale-of-subsidiaries-real-estate-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ftx-discovers-5-5b-in-liquid-assets-debtors-explore-ways-to-maximize-recovery-via-potential-sale-of-subsidiaries-real-estate-bitcoin-news\/","title":{"rendered":"FTX Discovers $5.5B in Liquid Assets \u2014 Debtors Explore Ways to Maximize Recovery via Potential Sale of Subsidiaries, Real Estate \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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On Jan. 17, 2023, FTX Trading Ltd. and affiliated debtors updated the public and detailed that the firm\u2019s current administrators have discovered $5.5 billion of liquid assets to date. Top-level executives, including the new FTX CEO and chief restructuring officer, John J. Ray III, met with the bankruptcy case\u2019s committee of unsecured creditors to share the news.<\/strong><\/p>\n

FTX Uncovers $5.5 Billion in Liquid Assets Through \u2018Herculean Investigative Effort\u2019<\/h2>\n

FTX has discovered $5.5 billion in liquid assets, according to a press statement released at 2:40 p.m. Eastern Time, Tuesday. The debtors, including FTX CEO John J. Ray III, announced that the team identified the funds through a \u201cherculean investigative effort.\u201d The company\u2019s press release details that the team found $3.5 billion in cryptocurrency assets, $1.7 billion in cash deposits and roughly $3 million in securities.<\/p>\n

\"FTX
The new FTX CEO and chief restructuring officer John J. Ray III.<\/figcaption><\/figure>\n

The press release further noted that the FTX team discovered $323 million was lost to unauthorized third-party transfers before the Chapter 11 bankruptcy filing was registered on Nov. 11, 2022. Furthermore, $426 million \u201cwas transferred to cold storage under the control of the Securities Commission of The Bahamas,\u201d the debtors\u2019 statement details.<\/p>\n

\"FTX
Screenshot of the FTX debtors\u2019 presentation to the committee of unsecured creditors.<\/figcaption><\/figure>\n

FTX debtors disclose that crypto assets currently held by FTX executives and the restructuring teams are also held in cold storage. \u201cWe 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,\u201d Ray explained in the update. \u201cWe 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.\u201d<\/p>\n

FTX Debtors Investigate Historical Transactions, Including Voyager and Blockfi Deals, and $93M in Political Donations<\/h2>\n

The presentation shared with the committee of unsecured creditors is also attached to the FTX press release, and it notes that an investigation \u201cconfirmed shortfalls at both international and U.S. exchanges.\u201d Furthermore, the investigation \u201cuncovered the mechanics behind how Alameda Research had the ability to borrow without collateral effectively unlimited amounts from customers.\u201d The debtors\u2019 report insists that a \u201csmall group of individuals\u201d had the ability to remove assets from FTX without it ever being \u201crecorded on the exchange ledger.\u201d<\/p>\n

\"FTX
Screenshot of the FTX debtors\u2019 presentation to the committee of unsecured creditors.<\/figcaption><\/figure>\n

In addition to the recovered $5.5 billion, FTX debtors are exploring multiple facets to maximize the recovery process through the \u201cpotential sale\u201d of four subsidiaries. The team is exploring ways to monetize the hundreds of investments made that currently hold a book value of around \u201c$4.6 billion.\u201d<\/p>\n

\"FTX
Screenshot of the FTX debtors\u2019 presentation to the committee of unsecured creditors.<\/figcaption><\/figure>\n

FTX debtors want to maximize recovery by \u201cmarketing real estate in the Bahamas,\u201d and investigators aim to probe \u201call historical transactions\u201d related to the business.<\/p>\n

\"FTX
Screenshot of the FTX debtors\u2019 presentation to the committee of unsecured creditors.<\/figcaption><\/figure>\n

The real estate owned by the inner circle is worth around $205.5 million, stretched across 27 different properties located in The Bahamas. The historical transactions being investigated involve the Voyager and Blockfi deals, alongside $93 million worth of political donations FTX executives made between March 2020 and November 2022.<\/p>\n

\u201cHundreds of [mergers and acquisitions] M&A and other transactions under review,\u201d the presentation explains. The presentation also gives a detailed visual map of how the inner circle, mostly Alameda Research, could \u201cwithdraw assets without [a] record on the exchange ledger.\u201d<\/p>\n

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\nTags in this story
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Alameda Research<\/a>, bahamas<\/a>, Bankruptcy<\/a>, book value<\/a>, Cash Deposits<\/a>, Chapter 11 Bankruptcy<\/a>, collateral<\/a>, Cryptocurrency Assets<\/a>, Customers<\/a>, debtors<\/a>, FTX Bankruptcy<\/a>, FTX collapse<\/a>, FTX debtors<\/a>, FTX Trading<\/a>, historical transactions<\/a>, Inner Circle<\/a>, Investments<\/a>, John J. Ray III<\/a>, liquid assets<\/a>, M&A<\/a>, political donations<\/a>, Real estate<\/a>, recovery<\/a>, restructuring<\/a>, Securities<\/a>, subsidiaries<\/a>, unauthorized third-party transfers<\/a>, unlimited amounts<\/a><\/div>\n<\/div>\n

What are your thoughts on FTX\u2019s efforts to maximize recovery and uncover the truth behind the unauthorized transfers and historical transactions? Share your insights in the comments below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: Poetra.RH \/ Shutterstock.com<\/em><\/p>\n

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