After the collapse of FTX and Sam Bankman-Fried’s empire in November 2022, the liquidators of the former Exchanges giant are looking to reclaim what’s left of it for former clients at any cost. According to a lawyer for the liquidators, the equivalent of $5 billion in assets has already been recovered. However, the extent of the clients’ losses is still unknown…
A ray of hope for former FTX customers!
A year ago, FTX was worth nearly $32 billion. Unfortunately, in November 2022, it filed for bankruptcy. The U.S. justice system is currently prosecuting SBF, the Exchange’s CEO, for organizing a fraud that allegedly stripped billions from investors.
Since then, aggrieved clients have been closely following FTX’s bankruptcy proceedings, but also the evolution of the ex-magnate’s legal case. A glimmer of hope finally seems to appear on the horizon! Potentially encouraging news has just come out this Wednesday, January 11, suggesting a possible outcome to this desperate situation.
According to Coindesk, Adam Landis, an attorney at Sullivan & Cromwell who is representing the liquidators of FTX, revealed that $5 billion is now in the hands of the bankrupt Exchange’s liquidators.
We have located over $5 billion in cash, cryptocurrencies and liquid investment securities.Adam Landis, attorney at Sullivan & Cromwell
It is not yet clear how much FTX owes its creditors. However, the company estimates that the amount ranges from $1 billion to $10 billion. According to Delaware Bankruptcy Court Judge John Dorsey, by March 15, the team should be able to determine the shortfall. He gave that estimate at Wednesday’s hearing.
So far, the liquidation team has managed to raise:
- $5 billion recovered;
- An additional $425 million in crypto, held by the Bahamas Securities Commission;
- 450 million in Robinhood shares of a Sam Bankman company recovered on January 4 by the Delaware court.
With this, aggrieved clients can begin to sleep soundly in the hope of recovering their assets. We await the outcome of the case.
CEO and Editor-in-Chief of Coinpri I have been navigating the waters of Blockchain for 5 years already.
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