According to a Bloomberg report, FTX’s current leadership team has recovered approximately $7 billion and is now in a position to return 40% of the assets to clients.
FTX was a popular cryptocurrency trading platform that went bankrupt in November 2022 after the backend crew misused the customer’s funds for personal gain.
Sam Bankman-Fried (SBF), FTX co-founder and former CEO, was the key perpetrator behind the entire backend dark game. SBF is currently facing almost a dozen fraud charges, despite the fact that no fraud or crime charges have been proven against him.
It was reported on June 27, 2023, that the present FTX leadership team reclaimed a net $7 billion in funds and owed clients approximately $8.7 billion when it filed for bankruptcy last year.
The present management team also allegedly claimed that the previous leadership was falsely portraying accounts to the bank, which was the primary cause of the company’s and users’ funds commingling.
The net liabilities of the bankrupt exchange are approximately $15 billion, which indicates that the exchange is now in a position to repay nearly 40% of the funds to consumers.
Prior to its bankruptcy, the exchange and its linked crypto hedge business Alameda Research invested $500 million in an AI startup.
According to recent sources, the FTX team has halted the liquidation of this startup’s stakes since there is a chance for the exchange to create additional money for clients.
According to the Bloomberg story, FTX and Alameda invested approximately $1.5 billion in cryptocurrency miner Genesis Digital, which was possibly a very hazardous investment due to the low possibility of profit. It is still unknown why the exchange invested in such a terrible enterprise.
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