brokerage Digital currencies FTX It has recovered more than $5 billion in assets, but the extent of its clients’ losses remains unknown, a lawyer working on the company’s bankruptcy process said Wednesday.
The company, which a year ago was valued at $32 billion, filed for bankruptcy in November, and its founder, Sam Bankman-Fried, is responding to accusations that he is responsible for an “epic fraud” that may have cost investors and financiers billions of dollars. According to prosecutors.
“We have identified more than $5 billion in cash, cryptocurrency, and liquid investment securities,” Andy Dietderich, an attorney for FTX, told the judge handling the case during a hearing on Wednesday.
Dietrich also said the company plans to sell non-strategic investments with a book value of $4.6 billion.
However, Dietdrich said the legal team is still working to establish internal records and that the current size of the hole for FTX customers is still unknown.
The CFTC estimates the company’s customer shortfall at more than $8 billion.
The $5 billion recovered does not include assets seized by authorities in the Bahamas, where FTX is headquartered, Dietderich said.