The new restructuring team of bankrupt cryptocurrency exchange FTX has reportedly located over US$1 billion in cash assets that are held in U.S. financial institutions. The team also requested back millions in political and charitable contributions made by former chief executive Sam Bankman-Fried.
See related article: FTX founder Sam Bankman-Fried set to return to the U.S. on Wednesday
Fast facts
- FTX’s new management told creditors on Tuesday at a procedural hearing that it has identified US$720 million in cash assets in U.S. financial institutions authorized by the U.S. justice department to hold funds, which FTX has not consolidated. Another sum of cash assets near US$500 million is already held by various institutions in the U.S.
- The bankrupt crypto exchange is working to gain access to millions of dollars worth of assets in hundreds of bank accounts in an effort to resolve its current financial adversity, FTX said in statements given to creditors earlier this week, according to Coindesk.
- FTX’s new chief financial officer, Mary Cilia, speaking under oath during the bankruptcy proceedings, said about US$130 million is ringfenced in Japan for local customers while another US$6 million worth of assets are being kept for operational expenses.
- The new FTX team is also asking back various donations made by Bankman-Fried, who publicly made nearly US$40 million in political contributions primarily to Democratic Party candidates, according to The Washington Post.
- If the past contributions from Bankman-Fried are not returned “voluntarily,” FTX will “commence actions before the Bankruptcy Court to require the return of such payments,” the statement added.
- FTX and Alameda Research filed for Chapter 11 bankruptcy protection on Nov. 11, and the company’s collapse caused users and investors around the world to lose billions of dollars.
See related article: FTX seeks permission to sell Japan, Europe entities and LedgerX