There appears to be hope for FTX creditors as the defunct FTX Exchange claims to have secured assets worth $5 billion. FTX’s attorney, Andrew G. Dietderich stated this during bankruptcy court proceedings in federal court in Wilmington, Delaware.
A report from The Washington Post revealed that the $5 billion was recovered in cash and liquid assets and are expected to be used to pay back FTX customers and creditors whose funds are still stuck with the bankrupt exchange.
Dietderich also emphasized that the total amount owed to FTX customers is unknown because the bankrupt firm is still restoring its transaction history.
Meanwhile, the $5 billion FTX claims to have recovered both in cash and liquid assets is far bigger than the $1 billion crypto assets FTX’s new CEO, John Ray III claimed FTX had in identifiable assets back in December.
The new FTX CEO stated that the company was able to recover $1 billion in digital assets during his testimony before the House Committee on Financial Services of the United States. He also made a comment that FTX was working with cryptocurrency research companies like Chainalysis and BitGo to find as many funds as possible.
FTX Explore Various Recovery Options
After the company failed last year and the former CEO, Sam Bankman-Fried was imprisoned as a result of criminal investigations, the new management of FTX began investigating methods for the recovery of funds and reorganization of the company.
John Ray III had earlier proposed that FTX may explore selling part of the firm or restructuring entirely. At that time, the firm was evaluated, and the result showed that FTX subsidiaries, independent of FTX still have strong balance sheets, in addition to franchises that are valuable.
Ray also said he had instructed the group of debtors to do everything within their power to maintain the franchise value despite the challenging circumstances and to be patient with their team members, clients, stakeholders in the government, and regulators.
Furthermore, Dietderich told a bankruptcy Judge that FTX plans to sell its independent subsidiary firms including; LedgerX, Embed, FTX Japan, and FTX Europe valued at $4.6 billion.
In related news, the former President of FTX.US, Brett Harrison said he would share information in the future about the bankrupt FTX exchange after being asked about his thoughts on the demise of the exchange.
