Collapsed cryptocurrency exchange FTX is actively selling off its assets and accumulating cash in a bid to reimburse its customers, who have had their accounts frozen since the company’s dramatic downfall in 2022.
The firm’s largest affiliates, including FTX Trading Ltd. and Alameda Research LLC, have significantly boosted their cash reserves, soaring from approximately $2.3 billion in late October to a substantial $4.4 billion by the end of 2023. These figures, revealed in Chapter 11 monthly operating reports, don’t account for the total cash held by other affiliates.
In efforts to bolster its finances, FTX disclosed in a recent court filing that it had generated $1.8 billion by December 8 through the sale of various digital assets. FTX is meanwhile engaging in Bitcoin derivatives trading to hedge its exposure to BTC and generate yield from its holdings while exploring options to restart the exchange.
Since the company’s collapse in November 2022, bankruptcy advisers have been diligently locating assets and negotiating agreements aimed at compensating customers with smaller accounts.
FTX has also filed lawsuits against former collaborators of Sam Bankman-Fried and crypto businesses like Bybit Fintech Ltd. which pulled money out of FTX before it declared bankruptcy. FTX has said it doesn’t expect customers will be fully repaid, with FTX.com customers taking the largest losses.
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- Source: https://www.cryptocompare.com/email-updates/daily/2024/jan/29/
