Previous reports suggested that FTX saw losses peak at nearly $9 billion in total liabilities.
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According to FTX attorney Andy Dietderich, the troubled cryptocurrency exchange has “recovered $5 billion in cash and liquid cryptocurrencies.” However, the exchange is still “working to rebuild transaction history,” and the total amount of customer shortfall is “still unclear.” The recovered assets do not include those seized by the Securities Commission of the Bahamas, which is largely composed of the exchange’s native token FTT. The tokens have a total market cap of $444.7 million at the time of publication.
Speaking to a U.S. bankruptcy judge in Delaware on Wednesday, Dietderich also stated that the company plans to sell $4.6 billion worth of non-strategic investment. These include subsidiaries such as LedgerX, Embed, FTX Japan and FTX Europe. The companies are independent from FTX with segregated accounts. FTX Japan has already drafted plans to return costumer funds. In addition, FTX will end its 2021 to 2028 sponsorship deal with popular multiplayer online battle arena game League of Legends.
Cointelegraph previously reported that FTX has $8.8 billion in total liabilities. At the time, sources said the exchange had very little in cash and liquid digital assets, amounting to an estimated $8 billion hole in its balance sheet.
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Sam Bankman-Fried, the disgraced founder of FTX, has pled not guilty to all criminal charges related to the exchange’s fallout. The United States Attorney’s Office for the Southern District of New York has formed an FTX Task Force to “trace and recover” missing customer funds and handle investigations and prosecutions related to the exchange’s collapse.
This is a breaking news story and will be updated accordingly
Source: cointelegraph.com
