The now-defunct cryptocurrency exchange, FTX, has secured significant funds through the Chapter 11 process and holds over $3 billion in crypto assets as of August 31, 2023, according to a Monday court filing. The documents also reveal that FTX is still holding approximately $7 billion in total assets, including $1.16 billion worth of Solana (SOL) tokens and $560 million in Bitcoin (BTC).
FTX's total holdings include a variety of cryptocurrencies such as Bitcoin, Ethereum, Aptos, Tether, Ripple, BitDAO, Stargate Finance, Wrapped Bitcoin, and Wrapped Ethereum. The exchange also held over $500 million worth of securities in its brokerage accounts as of Monday. These securities investments include substantial amounts in Grayscale’s Ethereum and Bitcoin trusts.
The court records indicate that $2.6 billion of debtor and non-debtor cash has been confirmed to date. The company managed to secure fiat from over 30 separate banking institutions globally amid the Q1 2023 financial banking turmoil. Cash has been located and pooled within a Master account for purposes of safeguarding estate assets.
In addition to the aforementioned assets, the court filing also disclosed that FTX owns 38 condos, penthouses, and other properties in the Bahamas with an estimated value of approximately $200 million.
Prior to its bankruptcy filing in November 2023, FTX made significant payments to senior executives including founder Sam Bankman-Fried. It was revealed that Bankman-Fried and other executives received a total of $2.2 billion in cash, crypto, equity, and real estate in the months preceding the bankruptcy. This detail is significant as US law permits such payments to be recovered and added to the pool of assets available for distribution among creditors.
FTX's new management is making efforts to reclaim funds that were allegedly mismanaged by Bankman-Fried and other executives. They have initiated legal action to recover the estimated $700 million Bankman-Fried had invested in venture capital firm, K5. The company is also investigating the possibility of reclaiming millions of dollars paid to celebrities for their endorsements of the platform.
FTX has sought permission from a New York judge to initiate the sale of its crypto holdings to repay creditors in cash. Fears that the bankrupt crypto exchange may soon liquidate significant portions of SOL have crashed the token's price. However, some users on social media platform X have voiced concerns over the impending sell-off, while others noted that the bankruptcy plan actually restricts how much can be sold off at once.
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