FTX debtors identify $426 million of digital assets transferred to cold storage by Securities Commission says – Eye Witness News & More Trending News

NASSAU, BAHAMAS — FTX Trading and its affiliated debtors revealed yesterday that they’ve recognized $1.6 billion of digital assets related to FTX.com of which $426 million was transferred to cold storage below the management of The Securities Commission of The Bahamas (SCB).

FTX Trading and its affiliated debtors stated yesterday that they’ve supplied particulars concerning the digital assets recognized to date of their makes an attempt to get well funds from the collapsed crypto alternate and its numerous subsidiaries.

FTX Trading stated that its top-level administration and advisors met with the members of and advisors to the Official Committee of Unsecured Creditors of their chapter 11 circumstances yesterday morning as half of their ongoing efforts to share preliminary data obtained for the reason that graduation of the chapter 11 circumstances on November 11, 2022, and to present an replace concerning asset restoration efforts to date.

FTX Trading and its affiliated debtors additionally revealed {that a} whole of roughly $5.5 billion of liquid assets have been recognized, comprised of $1.7 billion of money, $3.5 billion of crypto assets, and $0.3 billion of securities.

“With respect to FTX.com, the FTX Debtors have identified approximately $1.6 billion of digital assets associated with FTX.com as of the Petition Date, $323 million of which was subject to unauthorized third-party transfers post-petition, $426 million of which was transferred to cold storage under the control of The Securities Commission of The Bahamas, $742 million of which is in cold storage under the control of the FTX Debtors, and $121 million of which is pending transfer to cold storage under the control of the FTX Debtors. The assets identified as of the petition date are substantially less than the aggregate third-party customer balances suggested by the electronic ledger for FTX.com,”  it was famous. 

The Securities Commission has acknowledged that it moved $3.5 billion from FTX’s Bahamian subsidiary, FTX Digital Markets, into its personal digital wallets to be held on a “temporary basis” till it’s directed by the nation’s Supreme Court to ship them to prospects and collectors, or to liquidators.

It was additional famous, “With respect to the FTX US exchange, the FTX Debtors have identified approximately $181 million of digital assets associated with FTX US as of the Petition Date, $90 million of which was subject to unauthorized third-party transfers post-petition, $88 million of which is in cold storage under the control of the FTX Debtors, and $3 million of which is pending transfer to cold storage under the control of the FTX Debtors. The assets identified as of the Petition Date are substantially less than the aggregate third-party customer balances suggested by the electronic ledger for FTX US.”

“We are making important progress in our efforts to maximize recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information,” stated John Ray III, the Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors. “We ask our stakeholders to understand that this information is still preliminary and subject to change. We will provide additional information as soon as we are able to do so.”

Earlier this month, FTX founder Sam Bankman-Fried pleaded not responsible in a Manhattan federal court docket to fees that he defrauded buyers and illegally diverted a large quantity of buyer deposits to his Alameda Research crypto hedge fund for his personal private profit and to assist develop his crypto empire. Judge Lewis A. Kaplan set a tentative trial date of October 2. Bankman-Fried, 30, has been below home arrest at his dad and mom’ California house on a $250 million bond.