ALBAWABA — The new management of crypto exchange FTX has recovered more than $5 billion in various assets to help it stay afloat after its collapse last year, a United States bankruptcy court heard on Wednesday.
The updated amount came after the company reported finding over $1 billion in November.
"We have located over $5 billion of cash, liquid cryptocurrency and liquid investment securities, " FTX's lead attorney Adam Landis told Judge John Dorsey in Delaware during Wednesday’s bankruptcy proceedings.
The new amount doesn't ascribe any value to holdings of dozens of illiquid cryptocurrency tokens, Landis said, noting that such holdings "are so large relative to the total supply that our positions cannot be sold without substantially affecting the market for the token".
Assets seized by the Securities Commission of the Bahamas, where the company was headquartered and former CEO Sam Bankman-Fried resided, are also not included.
The seized assets in the Bahamas are principally comprised of FTX’s proprietary and illiquid FTT token, which is highly volatile in price, Landis said.
Judge Dorsey approved FTX’s request for procedures to explore sales of affiliates to raise additional funds for the benefit of its customers.
Its affiliates, LedgerX, Embed, FTX Japan and FTX Europe, each has its own segregated customer accounts and separate management teams, according to FTX court filings.
FTX says it is not committed to selling any of its affiliates even though it has received many unsolicited offers but plans to hold auctions beginning next month.
