In an April 12 hearing in the United States Bankruptcy Court for the District of the Delaware, lawyers with Sullivan and Cromwell representing FTX report said that the popular bankrupted crypto exchange founded by Sam Bankamn Fried, FTX, had recovered roughly 7 billion dollars in liquid assets. They also noted that the exchange is looking to reboot and make a new start and can start its operations by 2024.
FTX backstory
By the end of Q3 2022, FTX was one of the largest crypto exchanges in the world, with over 20 billion dollars in assets during its peak. It was founded by an American entrepreneur and investor, Sam Bankman Fried, who was once ranked the 41st richest American in the Forbes 400.
Everything was going great for him and the crypto exchange until all of a sudden, the exchange collapsed and filed for Chapter 11 bankruptcy protection in November 2022. This shook the entire crypto market, which lost billions of dollars at the time, even falling below 1 trillion dollars valuation.
As per the reports, FTX.US suffered a downfall due to the lack of liquidity and management of funds, followed by a large number of withdrawals from its investors and customers. This plummeted the value of FTX’s token, FTT, and two of the most significant coins in the market, Bitcoin.
In the hours following, FTX CEO Sam Bankman Fried also stepped down as CEO, and the exchange experienced a possible hack in which crypto tokens worth hundreds of millions of dollars were stolen. As you know, FTX in November 2022 suffered a liquidity crisis and searched for bailout funds; its rival exchange Binance tried buying portions of the company but quickly backed out.
FTX founder and ex-CEO Sam Bankman Fried was arrested in The Bahamas and extradited to the United States in late December. He, however, pleaded innocent to all the criminal charges on Jan 3, 2023.
FTX recovered assets worth billions of dollars and planning to reboot
As you know, the popular bankrupted crypto exchange, FTX, recovered roughly over 7 billion dollars in liquid assets and is planning to reboot. Per the lawyers representing FTX, the exchange might start operations by the second quarter of 2024. FTX’s current CEO, John Ray, was also seen mulling reviving the exchange in a January interview.
The revival plan can be seen going well for FTX as the price of their crypto token, FTT, has surged from 1.32 dollars to 2.80 dollars, roughly at the same time lawyers announced the potential reboot of the exchange. The token price had largely stayed between 1 dollar and 2 dollars since the firm’s bankruptcy filing.
Bankruptcy denied a motion to reimburse former FTX CEO legal fees
At the same hearing, where the lawyers revealed the recovered assets, the judge presiding over the bankruptcy case of FTX denied a motion that would have allowed the court to prioritize reimbursing former FTX CEO SBF legal fees. He also left the door open for SBF to present evidence to the court in the future regarding the motion.
The court proceedings of the bankruptcy case were followed by the debtor’s announcement that a Swiss court had granted a petition allowing the sale of FTX Europe AG, the firm’s European branch or arm.
What are your thoughts on hearing that FTX has recovered roughly 7 billion dollars in liquid assets? Do you think there are any chances for FTX to get back into the market, as they are willing to reboot and start its operation by 2024? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
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