FTX has recovered $5B in liquid assets, bankruptcy lawyer says
The fallen crypto exchange was once worth $32B
FTX investor Mark Miller discusses the fallout from FTX after losing $25,000 in the collapse.
Bankrupt cryptocurrency exchange FTX has recovered upwards of $5 billion in liquid assets, an attorney for the failed platform told a judge Wednesday.
The FTX Arena name is still visible where the Miami Heat basketball team plays in Miami on Nov. 12, 2022. Lawyers for FTX disclosed Wednesday that more than $5 billion in liquid assets have been recovered so far. (AP Photo/Marta Lavandier / AP Newsroom)
That figure includes cash, liquid digital assets and investments securities, the lawyer said.
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The revelation comes as FTX's new leadership, led by current chief executive John J. Ray III, try to recover what they can of customers' and investors' funds following the firm's collapse under previous CEO and founder Sam Bankman-Fried.
John Ray, CEO of FTX Cryptocurrency Derivatives Exchange, speaks during a House Financial Services Committee hearing investigating the collapse of FTX in Washington, D.C., on Dec. 13, 2022. (Al Drago/Bloomberg via Getty Images / Getty Images)
Prior to its downfall, FTX was the world's second-largest crypto exchange and was once valued at an estimated $32 billion.
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Ray previously warned that customers and investors who put their money in FTX should not hold out hope for a full recovery, telling a congressional panel last month, "We will never get all these assets back."
FTX founder Sam Bankman-Fried leaves Manhattan Federal Court in New York City after his arraignment and bail hearings on Dec. 22, 2022. (Michael M. Santiago/Getty Images / Getty Images)
Bankman-Fried was arrested last month on several charges alleging he took funds from customers and diverted them to Alameda Research LLC, his crypto hedge fund, and used the money for personal purposes including buying real estate and making political contributions.
He is presently at his parents' home in California, awaiting trial, after posting a $250 million bond, secured against their residence.
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FOX Business' Eric Revell and Reuters contributed to this report.