FTX Has Located More Than $1Bn in Assets
- The new FTX management team said it located approximately $1 billion in assets, which includes $720 million in cash from different bank accounts.
- The team claimed that another $500 million is being held by institutions in the United States, while $130 million is stuck in Japan.
According to information provided to creditors on Tuesday, the new management team at FTX is trying to retrieve hundreds of millions of dollars in cash from different bank accounts, a move geared towards offering some form of stability to the bankrupt exchange.
FTX welcomed a new management team after its founder, Sam Bankman-Fried, left his role on November 11, the same day he filed for bankruptcy. The new team claimed to have identified assets worth more than $1 billion at a procedural hearing on Tuesday. The team said it located roughly $720 million in cash assets in US banking institutions. About $500 million is reportedly being held in U.S. institutions.
FTX’s new chief financial officer, Mary Cilia said during the bankruptcy proceedings,
We are reaching out to all of those banks and changing the signatories on the accounts so that we can get access to the accounts and move the cash as much as we can to authorized depository institutions.
According to Cilia, over $130 million in cash is held hostage in Japan, where local restrictions have primarily ringfenced funds for local clients. The new FTX CFO said that the majority of the $423 million remaining at unauthorized U.S. institutions is at a single broker. She, however, declined to name the broker, adding that an additional $6 million is being preserved for administrative costs, including salaries. According to Cilia, $485 million is already in a licensed deposit facility.
The Chapter 11 bankruptcy proceedings have become more difficult due to Bankman-Fried’s alleged poor record-keeping and management. Under the 30-year-old’s leadership, FTX was said to have been involved in financial malpractice, putting customers’ funds at risk.
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