New FTX Administration Has Positioned Over $5B in Liquid Property

Key Takeaways

  • The brand new FTX administration has positioned over $5 billion in liquid property.
  • These embody money, liquid cryptocurrencies, and liquid funding securities.
  • The sum doesn’t embody the $425 million being held by the Securities Fee within the Bahamas, nor the $490 million just lately seized by the Division of Justice from one in every of Sam Bankman-Fried’s holding firms.

Share this text

Below John Ray, FTX has positioned over $5 billion of company-related liquid property—together with money, liquid cryptocurrencies, and liquid shares.

Finding the Funds

The brand new administration crew at FTX has been exhausting at work.

A lawyer representing the defunct crypto alternate, Adam Landis, declared throughout a listening to in the present day that FTX had recovered over $5 billion in varied property.

“We’ve positioned over $5 billion of money, liquid cryptocurrency and liquid funding securities measured at petition date worth,” said Landis, who works as an legal professional at Sullivan & Cromwell. “[It] simply doesn’t ascribe any worth to holdings of dozens of illiquid cryptocurrency tokens, the place our holdings are so massive relative to the full provide that our positions can’t be bought with out considerably affecting the marketplace for the token.”

In different phrases, the $5 billion determine more than likely excludes Alameda Analysis’s positions in tokens akin to SRM, FIDA, MAPS, and OXY. The buying and selling agency had beforehand given these holdings excessive valuations in its steadiness sheet regardless of its incapability to dump the tokens with out inflicting their respective markets to crash.

In addition to the $5 billion in liquid property recovered by FTX, $425 million is presently being held by the Securities Fee of the Bahamas, and over $490 million was seized by the Division of Justice on Monday from one in every of Sam Bankman-Fried’s holding firms. The DOJ can be investigating the identification of the FTX hacker, who stole at the very least $372 million from the platform on November 12 because it was collapsing.

It’s nonetheless unclear how a lot FTX truly owes its collectors. The corporate indicated in its preliminary chapter filings that the opening in its steadiness sheet was anyplace $1 billion and $10 billion.

Disclaimer: On the time of writing, the creator of this piece owned BTC, ETH, and several other different crypto property.

Share this text

Digital musculoskeletal firm Hinge Well being launches in-person residence care

15 Little Adjustments You Can Make in Your Dwelling to Assist It Serve You…