FTX Finds $5.5 Billion in Liquid Assets, But Shortfall Still Looms
• FTX and its advisors have found about $5.5 billion in liquid assets, including $1.7 billion of cash, $3.5 billion of crypto assets, and $0.3 billion of securities.
• Despite the large sums discovered, customers may still not get fully reimbursed due to a substantial shortfall of assets.
• The Debtors have identified an estimated $1.6 billion worth of digital assets belonging to FTX.com.
FTX, a cryptocurrency exchange, and its affiliates have recently revealed that they have found about $5.5 billion worth of liquid assets, which includes $1.7 billion of cash, $3.5 billion of crypto assets, and $0.3 billion of securities. The exchange and its advisors have met with the officials and members of the Official Committee of Unsecured Creditors (UCC) in the exchange’s bankruptcy case.
Despite this large sum of liquid assets, FTX Debtors have clarified that there is still a substantial shortfall of assets, meaning customers may not get fully reimbursed. The Debtors have identified an estimated $1.6 billion worth of digital assets belonging to FTX.com, out of which $323 million was transferred out of the exchange by unauthorized third parties, $426 million is held in cold storage by Bahamian authorities, the Debtors hold $743 million in cold storage, and another $121 million is set to be sent to its cold wallet.
In addition, the Debtors have also identified about $181 million worth of crypto belonging to FTX US, with $90 million out of the discovered assets having been transferred out of the platform by unauthorized third parties. It is unclear if customers will be able to recoup their losses, as the Debtors are still working to identify more assets.
In the meantime, FTX is still in the murky waters, as customers and debtors wait for the exchange to identify and secure more liquid assets. Financial advisors and authorities are still in the process of verifying the assets that have been discovered, and it remains to be seen if customers will be able to get their funds back.