FTX: it took 'Herculean investigative effort' to identify $5.5B in liquid assets

The debtors down FTX person identified $5.5 cardinal successful liquid assets but reported a “substantial shortfall of integer assets” astatine the bankrupt crypto speech and its U.S. arm.

In a Jan. 17 announcement, FTX said it had identified $1.7 cardinal successful cash, $3.5 cardinal successful crypto assets and $0.3 cardinal successful securities pursuing the steadfast filing for Chapter 11 bankruptcy successful November. The debtors added that they had identified astir $1.6 cardinal successful integer assets associated with FTX.com — including astir $426 cardinal being held by the Securities Commission of The Bahamas — and $181 cardinal connected to FTX US.

"We are making important advancement successful our efforts to maximize recoveries, and it has taken a Herculean investigative effort from our squad to uncover this preliminary information," said FTX CEO John Ray. "We inquire our stakeholders to recognize that this accusation is inactive preliminary and taxable to change. We volition supply further accusation arsenic soon arsenic we are capable to bash so."

Sharing the FTX Debtors’ property merchandise conscionable issued: https://t.co/fcSs36nFmq

The debtors added that of the $1.6 cardinal associated with FTX.com, they controlled $742 cardinal of assets successful acold retention and different $121 cardinal would beryllium available, pending transfer. From FTX US, the debtors held $88 cardinal successful acold storage, with $3 cardinal pending transfer.

FTX’s bankruptcy case, presently proceeding successful the District of Delaware, revealed successful November that the steadfast owed much than $3 cardinal to its apical 50 creditors — determination whitethorn beryllium much than 1 cardinal creditors with claims to assets connected the crypto exchange. Court proceedings from January suggested that FTX had “recovered $5 cardinal successful currency and liquid cryptocurrencies,” but the steadfast could inactive person up to $8.8 cardinal successful full liabilities.

“Based connected existent estimates of the magnitude of integer assets associated with the FTX.com and FTX US exchanges arsenic of the Petition Date, determination is simply a important shortfall of integer assets astatine some exchanges,” said the debtors.

Related: Former FTX US President lashes retired astatine ‘insecure’ SBF successful 49-part Twitter thread rant

Former FTX main enforcement serviceman Sam Bankman-Fried, who released a “pre-mortem overview” of the crypto exchange’s insolvency connected Jan. 12, claimed FTX US was “fully solvent” and susceptible of making its users whole. He added astatine the clip if FTX International were to “reboot,” it mightiness beryllium imaginable for the speech to reimburse customers with assets connected hand. Bankman-Fried is facing 8 transgression charges successful the FTX case, including for alleged violations of run concern laws and ligament fraud.