New FTX Control Has Positioned Over $5B in Liquid Belongings


Key Takeaways

  • The brand new FTX control has positioned over $5 billion in liquid property.
  • Those come with money, liquid cryptocurrencies, and liquid funding securities.
  • The sum does now not come with the $425 million being held by means of the Securities Fee within the Bahamas, nor the $490 million just lately seized by means of the Division of Justice from one in all Sam Bankman-Fried’s conserving corporations.

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Underneath John Ray, FTX has positioned over $5 billion of company-related liquid property—together with money, liquid cryptocurrencies, and liquid shares.

Finding the Finances

The brand new control workforce at FTX has been arduous at paintings.

A legal professional representing the defunct crypto trade, Adam Landis, declared all through a listening to lately that FTX had recovered over $5 billion in more than a few property.

“We have now positioned over $5 billion of money, liquid cryptocurrency and liquid funding securities measured at petition date price,” said Landis, who works as an lawyer at Sullivan & Cromwell. “[It] simply does now not ascribe any price to holdings of dozens of illiquid cryptocurrency tokens, the place our holdings are so huge relative to the full provide that our positions can’t be bought with out considerably affecting the marketplace for the token.”

In different phrases, the $5 billion determine possibly excludes Alameda Analysis’s positions in tokens corresponding to SRM, FIDA, MAPS, and OXY. The buying and selling company had prior to now given those holdings top valuations in its steadiness sheet in spite of its incapacity to dump the tokens with out inflicting their respective markets to crash.

But even so the $5 billion in liquid property recovered by means of FTX, $425 million is these days being held by means of the Securities Fee of the Bahamas, and over $490 million used to be seized by means of the Division of Justice on Monday from one in all Sam Bankman-Fried’s conserving corporations. The DOJ could also be investigating the identification of the FTX hacker, who stole no less than $372 million from the platform on November 12 because it used to be collapsing.

It’s nonetheless unclear how a lot FTX in reality owes its collectors. The corporate indicated in its preliminary chapter filings that the outlet in its steadiness sheet used to be any place $1 billion and $10 billion.

Disclaimer: On the time of writing, the writer of this piece owned BTC, ETH, and a number of other different crypto property.

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