A new report is revealing that beleaguered crypto trading platform FTX has so far recovered billions of dollars in assets.
The report says that the bankrupt crypto exchange has recovered $7 billion and expects to claw back even more. According to the new report, the global FTX platform owes its clients about $8.7 billion.
“Based on the Debtors’ ongoing analysis, as of the petition date, the FTX.com exchange owed customers approximately $8.7 billion. The vast majority of the deficit—over $6.4 billion—was in the form of fiat currency and stablecoin that had been misappropriated.
Despite the ongoing challenges created by the commingling of customer deposits and corporate assets, and other mismanagement of the FTX Group, the Debtors continue to make substantial progress in their ongoing efforts to identify, secure and recover assets for the estate.
To date, the Debtors have recovered approximately $7 billion in liquid assets, and they anticipate additional recoveries. The Debtors will continue to provide updates on their ongoing recovery efforts and investigation as their work progresses.”
The report further says that the beleaguered crypto exchange used customer deposits to fund its expenditures.
“Following substantial forensic analysis, which remains ongoing, the Debtors have been able to identify certain transactions that appear clearly to have been funded in part with commingled customer deposits. These include political and ‘charitable’ donations, venture investments and acquisitions, and the purchase of luxury real estate for senior FTX Group employees in the Bahamas…”
On political donations, the report says that the collapsed exchange’s founder and former CEO Sam Bankman-Fried as well as other top FTX executives donated over $100 million to politicians and political causes. The same cohort acquired properties in the Bahamas worth over $243 million using commingled customer deposits, according to the report.
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