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$323 million from FTX and $90 million from FTX US have been classified as “unauthorised third party transactions” since the bankruptcy petition.
In a Press Release published on Tuesday, FTX Trading Ltd. and its affiliated debtors announced that they have identified approximately $5.5 billion of liquid assets in the wake of their recent chapter 11 filing. This includes $1.7 billion of cash, $3.5 billion of crypto assets and $0.3 billion of securities.
The announcement came after a meeting with the Official Committee of Unsecured Creditors, during which a presentation was shared outlining the details of the assets and property of the FTX Debtors.
However, the FTX Debtors also confirmed that there is a substantial shortfall of digital assets at both the FTX.com and FTX US exchanges. To make matters worse, $323 million was identified as “unauthorised transactions” from FTX since the bankruptcy filing, and $90 million disappeared from FTX US in the same manner.
At FTX.com, the FTX Debtors have identified approximately $1.6 billion of digital assets associated with the exchange as of the petition date, which is substantially less than the aggregate third-party customer balances suggested by the electronic ledger for the exchange.
Similarly, at the FTX US exchange, the FTX Debtors have identified approximately $181 million of digital assets, also substantially less than the aggregate third-party customer balances suggested by the electronic ledger.
The FTX Debtors have also confirmed that some of the digital assets have been transferred to third parties, while others have been transferred to cold storage under the control of various entities such as The Securities Commission of The Bahamas and the FTX Debtors themselves.
The FTX Debtors are continuing their efforts to secure assets that may be associated with the exchanges and to trace digital assets back to the exchanges wherever possible. John J. Ray III, the Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors said:
"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,"
He added:
"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."
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.