Bankrupt major virtual currency exchange FTX reports that it has recovered funds of over 900 billion yen, and plans to restart the exchange

FTX, a major virtual currency exchange that went bankrupt in November 2022 , has recovered $ 7.3 billion (about 970 billion yen) in cash and virtual currency after bankruptcy, the company's lawyers have revealed. FTX is also considering options to reopen the cryptocurrency exchange in the future.

Bankrupt Crypto Exchange FTX Has Recovered $7.3 Billion in Assets

Bankrupt crypto exchange FTX has recovered $7.3 billion in assets | Reuters

FTX Discovers $7.3 Billion in Assets After Bankruptcy | SolanaFloor News

FTX, a virtual currency exchange founded in 2019 by American entrepreneur Sam Bankman-Freed, filed for bankruptcy proceedings under US federal law in November 2022. Bankruptcy was attributed to ``liquidity of assets'', but sloppy security and financial management, and opaque transfer of customer funds to Bankman-Fried's cryptocurrency hedge fund Alameda Research And so on, FTX has committed a huge amount of fraud, and regulators are looking at it.

The collapse of the virtual currency exchange 'FTX' is not an accident but a 'crime' - GIGAZINE

Defendant Bankman-Fried, who was detained in the Bahamas in January 2023, has been indicted by the US Attorney's Office for the Southern District of New York. If convicted on all eight criminal charges, including 'wire fraud', 'wire fraud conspiracy', 'securities fraud', 'securities fraud conspiracy' and 'money laundering', the maximum penalty is 115 years in prison. It is said that there is.

Bahamian police arrest Sam Bankman-Fried, founder of major bankrupt virtual currency exchange FTX - GIGAZINE

FTX attorney Andy Dietderich reported at a hearing held in the U.S. Bankruptcy Court in Delaware on April 12 that FTX had recovered more than $7.3 billion in cash and cryptocurrencies. Did. Since the beginning of 2023, the price of virtual currency has continued to rise, so the valuation of virtual currency held by FTX has increased by $ 800 million (about 106 billion yen) from January to April.

After filing for bankruptcy, FTX began working with a team of accountants, legal experts, blockchain analysts and others to identify and recover missing assets scattered across various wallets and custodial facilities. According to cryptocurrency media SolanaFloor News, “The discovery of $7.3 billion in assets has put FTX back in the spotlight and given a ray of hope to customers who were worried about the future of their funds.” says.

FTX Japan, the Japanese subsidiary of FTX, operates under Japan's strict cryptocurrency regulations, so Japanese customers are the only ones in the world who can withdraw funds from FTX, Dietderich explained. I'm here.

Progress status of withdrawal/retrieval service – Customer Support (Help/Inquiries) | FTX Japan

Dietderich said that after months of devoting himself to collecting funds and investigating the cause of bankruptcy, FTX is starting to think about future plans. Dietderich said, ``The situation has stabilized and the fire in the trash has disappeared,'' explaining that he is discussing with stakeholders about reopening the exchange.

A decision on whether FTX will start moving towards reopening the cryptocurrency exchange may be made by July 2023, but a number of issues need to be resolved, such as the return of funds to customers, so the decision will not be made until 2024. It is not expected that the plan will be approved until the second quarter. Dietderich said it was unclear whether FTX should use its own funds to reopen the exchange rather than pay back customers, and that reopening may require external funding or asset sales. increase.

In addition, Bankman-Freed defendant has already paid bail of 250 million dollars (about 33 billion yen) and has been released on bail, claiming his own innocence on Twitter and blogs. However, several former FTX executives who were arrested together have, by contrast, pleaded guilty and have agreed to cooperate with prosecutors.

Sam Bankman-Fried reveals his view on how FTX collapsed - GIGAZINE

in Note, Posted by log1h_ik