Bankrupt cryptocurrency exchange FTX.com had around US$1.4 billion in cash reserves at the end of 2022, according to an interim financial update released by the company’s legal team on Tuesday.
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- The updated cash balance is around 20% higher than the US$1.2 billion that was reported on Nov. 11 when FTX filed for bankruptcy. Around that time, liquidators testified that at least US$8 billion of customer assets were missing.
- U.S.-based affiliates of FTX, including the FTX US exchange, had US$261 million in cash at the end of 2022, according to the court document.
- FTX founder and former chief Sam Bankman-Fried, who is currently out on bail facing charges including wire fraud and money laundering, has repeatedly claimed that FTX US was solvent.
- He said in his personal blog last month that FTX US “had at least US$111 [million], and likely around US$400 [million], of excess cash on top of what was required to match customer balances.” Bankman-Fried has pleaded not guilty. His trial is set for October 2023.
- Liquidators have been searching for funds to repay more than nine million FTX customers and creditors that have been impacted by the Bahamas-based exchange’s collapse. Bankman-Fried stepped down as the company’s chief executive after filing for bankruptcy in November last year.
- FTX liquidators said in January that they had recovered at least US$5 billion of liquid assets, including cryptocurrencies and securities. The liquidators said they are looking to sell some of the assets slowly to avoid sudden price changes caused by large sales.
- The court documents also revealed that FTX had a combined staff of 195 at the year-end, a roughly 40% decrease since the company filed for bankruptcy.