An attorney representing FTX has confirmed FTX has recovered $5 billion in liquid investment securities, cash, and crypto which it lost before its crisis. FTX currently owes its numerous customers about $8 billion due to its missing assets crisis. The factual amount of customer shortfall is yet to be accurately measured.
FTX’s current liabilities are to the tune of $8.8 billion. Unfortunately, the company barely possesses liquid digital assets or cash currently and this has created a massive vacuum in the company’s balance sheet.
Asides the $5 billion recovered recently; there is also the $425 million in cryptocurrency domiciled with the Securities Commission of the Bahamas. There has been no explicit clarification on FTX’s debt but according to the estimates from new management, FTX owes its creditors anywhere from $1 billion to $10 billion.
The FTX crisis was a culmination of the unofficial racketeering that ensued when former chief executive officer of FTX instructed Gary Wong to create a code that enabled Alameda to take loans from FTX customers without first seeking their permission.
“We know what Alameda did with the money. It bought planes, houses, threw parties, made political donations. It made personal loans to its founders. It sponsored the FTX Arena in Miami, a Formula One team, the League of Legends, Coachella, and many other businesses, events, and personalities,” FTX attorney Adam Landis revealed in his statement.
As originally reported in (https://inside.com/cryptocurrency/posts/ftx-has-recovered-5b-in-assets-341598)