Key Takeaways
- The brand new FTX administration has positioned over $5 billion in liquid belongings.
- These embody money, liquid cryptocurrencies, and liquid funding securities.
- The sum doesn’t embody the $425 million being held by the Securities Fee within the Bahamas, nor the $490 million just lately seized by the Division of Justice from one in every of Sam Bankman-Fried’s holding firms.
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Below John Ray, FTX has positioned over $5 billion of company-related liquid belongings—together with money, liquid cryptocurrencies, and liquid shares.
Finding the Funds
The brand new administration staff at FTX has been arduous at work.
A lawyer representing the defunct crypto trade, Adam Landis, declared throughout a listening to in the present day that FTX had recovered over $5 billion in numerous belongings.
“We’ve positioned over $5 billion of money, liquid cryptocurrency and liquid funding securities measured at petition date worth,” acknowledged Landis, who works as an legal professional at Sullivan & Cromwell. “[It] simply doesn’t ascribe any worth to holdings of dozens of illiquid cryptocurrency tokens, the place our holdings are so giant relative to the whole provide that our positions can’t be offered with out considerably affecting the marketplace for the token.”
In different phrases, the $5 billion determine almost definitely excludes Alameda Analysis’s positions in tokens equivalent to SRM, FIDA, MAPS, and OXY. The buying and selling agency had beforehand given these holdings excessive valuations in its stability sheet regardless of its incapability to dump the tokens with out inflicting their respective markets to crash.
Moreover the $5 billion in liquid belongings recovered by FTX, $425 million is presently being held by the Securities Fee of the Bahamas, and over $490 million was seized by the Division of Justice on Monday from one in every of Sam Bankman-Fried’s holding firms. The DOJ can be investigating the id of the FTX hacker, who stole a minimum of $372 million from the platform on November 12 because it was collapsing.
It’s nonetheless unclear how a lot FTX truly owes its collectors. The corporate indicated in its preliminary chapter filings that the outlet in its stability sheet was wherever $1 billion and $10 billion.
Disclaimer: On the time of writing, the creator of this piece owned BTC, ETH, and several other different crypto belongings.
