Bankrupt FTX held US$1.4B in cash at the end of 2022 – Crypto News – Crypto News
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Bankrupt FTX held US$1.4B in cash at the end of 2022 – Crypto News

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Bankrupt cryptocurrency exchange FTX.com had around US$1.4 billion in cash reserves by the end of 2022, according to an interim financial update released by the company’s legal team on Tuesday.

See related articles: Alameda Research sues Voyager Digital for US$445.8 mln

Fast facts

  • The updated cash balance is around 20% higher than the US$1.2 billion that was reported on Nov. 11 when FTX filed for bankruptcy. Around that time, liquidators testified that at least US$8 billion of customer assets were missing.
  • US-based affiliates of FTX, including the FTX US exchange, had US$261 million in cash at the end of 2022, according to the court document.
  • FTX founder and former chief Sam Bankman-Fried, who is currently out on bail facing charges including wire fraud and money laundering, has repeatedly claimed that FTX US was solvent.
  • He said in his personal blog last month that FTX US “had at least US$111 [million]and likely around US$400 [million]of excess cash on top of what was required to match customer balances.” Bankman-Fried has pleaded not guilty. His trial is set for October 2023.
  • Liquidators have been searching for funds to repay more than nine million FTX customers and creditors that have been impacted by the Bahamas-based exchange’s collapse. Bankman-Fried stepped down as the company’s chief executive after filing for bankruptcy in November last year.
  • FTX liquidators said in January that they had recovered at least US$5 billion of liquid assets, including cryptocurrencies and securities. The liquidators said they are looking to sell some of the assets slowly to avoid sudden price changes caused by large sales.
  • The court documents also revealed that FTX had a combined staff of 195 at the year-end, a roughly 40% decrease since the company filed for bankruptcy.

See related articles: Sam Bankman-Fried’s family members are not cooperating with FTX attorneys, court documents claim

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