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FTX has recovered $5 billion price of ‘liquid’ property, attorneys notify

John Ray, chief executive officer of FTX Cryptocurrency Derivatives Replace, arrives at financial damage court in Wilmington, Delaware, US, on Tuesday, Nov. 22, 2022.

Eric Lee | Bloomberg | Getty Photos

FTX has recovered over $5 billion price of liquid property, at the side of cash and digital property, attorneys in Delaware financial damage court acknowledged all over an FTX financial damage hearing Wednesday.

The info comes after federal prosecutors presented plans to discover at the least $500 million price of FTX-connected property as half of their ongoing prosecution of FTX co-founder Sam Bankman-Fried.

The restoration will be a welcome boon to FTX potentialities after the crypto alternate imploded in November. FTX’s unusual CEO, John J. Ray, beforehand attested that at the least $8 billion of purchaser property net been unaccounted for in the “worst” case of company defend watch over he’d ever seen.

The $5 billion figure would not consist of any illiquid cryptocurrency property, FTX lawyer Adam Landis advised the court. He acknowledged the firm’s holdings are so powerful that promoting them would significantly net an affect on the market, driving down their price.

FTX’s give plot was linked to, amongst heaps of things, a failure to accurately label illiquid property to market. FTX executives, at the side of Bankman-Fried and Alameda Analysis CEO Caroline Ellison, borrowed in opposition to the price of the FTX-issued token FTT. Alameda managed the overwhelming majority of FTT cash circulating, corresponding to a publicly traded companies race, and would possibly perchance well presumably easy not net liquidated their region at stout book price.

Correction: This article has been updated to contemplate that FTX lawyer Adam Landis advised the court the $5 billion figure would not consist of any illiquid cryptocurrency property.

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