FTX Recovers $5B in Liquid Assets from Bankruptcy

• FTX, a bankrupt cryptocurrency exchange, has recovered over $5 billion in liquid assets.
• The assets include cash, liquid cryptocurrencies, and investment securities.
• The extent of losses made by customers due to the bankruptcy remains unknown, but the recovered assets do not include any of the $3.5 billion frozen by the Securities Commission of the Bahamas.

FTX, a cryptocurrency exchange, has recently recovered a massive $5 billion in liquid assets from its bankruptcy. The assets, which were unveiled in a US bankruptcy court, include cash, liquid cryptocurrencies, and investment securities. The news of the recovery has been welcomed by customers of the exchange, who had been concerned about the extent of their losses due to the bankruptcy.

Andy Dietderich, an attorney representing FTX, told US bankruptcy judge John Dorsey that the recovered assets do not include the $3.5 billion worth of assets frozen by the Securities Commission of the Bahamas. The regulator had seized the assets at the behest of Sam Bankman-Fried after a hack on the exchange. According to Dietderich, the seized assets mainly include FTX’s native token, FTT, which has tanked in value since the hack.

In addition to the recovered $5 billion, FTX is also planning to sell nonstrategic investments valued at around $4.6 billion. The FTX legal team is currently working out the full extent of the losses made by the customers, though it was initially estimated that the missing funds were over $8 billion.

The news of the recovery has been met with a mixed response from the cryptocurrency community. Many are pleased that FTX is able to recover some of its lost assets, but are concerned about the extent of the losses suffered by customers. FTX had a valuation of $32 billion at the start of last year, but the bear market and concerns over its balance sheet had triggered a rise in withdrawals. This eventually forced the exchange to file for US bankruptcy protection.

The recovery of $5 billion in liquid assets is a good sign for FTX and its customers, though the total extent of the losses remain unknown. The FTX legal team is still working to uncover the full extent of the damages incurred, and the $3.5 billion frozen by the Securities Commission of the Bahamas could have a significant impact on the outcome.