At a hearing in a Delaware bankruptcy court on Wednesday, the attorney of the bankrupt cryptocurrency exchange FTX said that the company had recovered more than $7.3 billion in cash and liquid crypto assets, an increase of more than $800 million since January.
After months of work committed to gathering resources and determining what went wrong under the leadership of accused ex-founder Sam Bankman-Fried, according to FTX attorney Andy Dietderich, the firm is now beginning to think about its future. Bankman-Fried entered a not-guilty plea.
"The situation has stabilized, and the dumpster fire is out," Dietderich said.
According to Dietderich, FTX has profited from a recent increase in crypto prices. Based on cryptocurrency values from November 2022, when it declared for bankruptcy after traders withdrew $6 billion from the marketplace in three days and rival exchange Binance abandoned a rescue arrangement, its total recovery would be worth $6.2 billion.
John Ray, the new CEO of FTX, described the failed cryptocurrency exchange's botched financial transfers and inadequate bookkeeping as a "complete failure" of controls.
Regarding options for restarting its cryptocurrency exchange, FTX is in discussions with stakeholders and could decide in the current quarter, according to Dietderich.
He did not go into much detail about what a reboot may entail for FTX customers whose crypto deposits were frozen during the bankruptcy proceedings.
Due to Japan's somewhat strict cryptocurrency legislation, only FTX consumers in that nation have been able to withdraw money thus far, according to Dietderich.
Due to the fact that the current consumer interface had little to do with the flow of money behind the scenes, the attorney claimed that FTX would require a sizable sum of money to restart its cryptocurrency exchange.
"The app worked beautifully, but in truth it was a facade," Dietderich said.
According to Dietderich, it is unclear if FTX should use its own money to restart the exchange rather than utilizing it to reimburse clients. The exchange may need outside money or the sale of exchange assets to restart.
According to Dietderich, FTX is also developing a preliminary Chapter 11 plan that would provide the company with a way out of bankruptcy.
While acknowledging that many specifics will need to be worked out as creditors compete for their portion of the company's assets, FTX aims to file that plan by the end of July. No Chapter 11 plan is anticipated to be authorized before the second quarter of 2024, according to FTX.
For their part in the company's demise, Bankman-Fried and a number of other executives have been charged with fraud. The former members of Bankman-Fried's inner circle have entered guilty pleas and promised to cooperate with investigators, in contrast to Bankman-Fried's not guilty plea.
(Source:www.theeconomictimes.com)
After months of work committed to gathering resources and determining what went wrong under the leadership of accused ex-founder Sam Bankman-Fried, according to FTX attorney Andy Dietderich, the firm is now beginning to think about its future. Bankman-Fried entered a not-guilty plea.
"The situation has stabilized, and the dumpster fire is out," Dietderich said.
According to Dietderich, FTX has profited from a recent increase in crypto prices. Based on cryptocurrency values from November 2022, when it declared for bankruptcy after traders withdrew $6 billion from the marketplace in three days and rival exchange Binance abandoned a rescue arrangement, its total recovery would be worth $6.2 billion.
John Ray, the new CEO of FTX, described the failed cryptocurrency exchange's botched financial transfers and inadequate bookkeeping as a "complete failure" of controls.
Regarding options for restarting its cryptocurrency exchange, FTX is in discussions with stakeholders and could decide in the current quarter, according to Dietderich.
He did not go into much detail about what a reboot may entail for FTX customers whose crypto deposits were frozen during the bankruptcy proceedings.
Due to Japan's somewhat strict cryptocurrency legislation, only FTX consumers in that nation have been able to withdraw money thus far, according to Dietderich.
Due to the fact that the current consumer interface had little to do with the flow of money behind the scenes, the attorney claimed that FTX would require a sizable sum of money to restart its cryptocurrency exchange.
"The app worked beautifully, but in truth it was a facade," Dietderich said.
According to Dietderich, it is unclear if FTX should use its own money to restart the exchange rather than utilizing it to reimburse clients. The exchange may need outside money or the sale of exchange assets to restart.
According to Dietderich, FTX is also developing a preliminary Chapter 11 plan that would provide the company with a way out of bankruptcy.
While acknowledging that many specifics will need to be worked out as creditors compete for their portion of the company's assets, FTX aims to file that plan by the end of July. No Chapter 11 plan is anticipated to be authorized before the second quarter of 2024, according to FTX.
For their part in the company's demise, Bankman-Fried and a number of other executives have been charged with fraud. The former members of Bankman-Fried's inner circle have entered guilty pleas and promised to cooperate with investigators, in contrast to Bankman-Fried's not guilty plea.
(Source:www.theeconomictimes.com)
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