The cryptocurrency exchange FTX, which faced troubles, announced that it has recovered $5 billion in cash and liquid cryptocurrencies.
An attorney in Delaware bankruptcy court for collapsed crypto exchange FTX, which filed for bankruptcy in November, announced in a hearing on Jan 11. According to the attorney's report, more than $5 billion in cash, liquid cryptocurrency, and liquid investment securities have been recovered.
The recovery of $5 billion in assets from the failed crypto exchange, FTX, comes after federal prosecutors announced their intent to seize at least $500 million worth of assets connected to the exchange and its co-founder, Sam Bankman-Fried, as part of their ongoing prosecution.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What are dApps in Crypto? (Explained with Animations)
According to multiple resources, bankruptcy proceedings are focused on recovering funds to repay creditors, as the company's founder, Sam Bankman-Fried, faces accusations of staging a large-scale fraud that may have cost investors and customers billions of dollars.
When the exchange collapsed in November 2022, FTX customers were collectively owed at least $8 billion in missing assets.
Previously, FTX collapsed due to the firm facing a series of events that resulted in the exchange filing for bankruptcy protection. On November 6, 2022, when the rival exchange sold all FTT tokens, FTT had a sharp decline, plunging 80% due to liquidity concerns, resulting in a loss of over $2 billion in value.
During the hearing, attorney Andy Dietderich also stated that the company plans to sell non-strategic investments, which have a book value of $4.6 billion, however, these books have been described as unreliable.
In other FTX-related news, a former FTX executive met with prosecutors to provide evidence against the collapsed exchange FTX and its ex-CEO Sam Bankman-Fried.