The
once-collapsed FTX cryptocurrency exchange has recovered $7.3 billion in liquid
digital assets and cash. Since January, this figure has increased by $800
million, according to a statement by the company’s lawyer, Andy Dietderich, who
testified on Wednesday before the American Bankruptcy Court.
Dietderich
admitted that the value of recovered assets would have been $1 billion lower if
not for the strong growth of cryptocurrencies since the beginning of the year.
For example, Bitcoin (BTC), the largest and oldest digital asset, has gained
over 80% in the past three months.
Part of the
recovered funds came from a deal with Modulo Capital to raise $400 million in
cash that was in the hedge fund’s accounts. The funds were sent by
FTX-related companies in 2022.
After users
withdrew over $6 billion from the platform in just three days in November, and Binance pulled out of a rescue deal proposal, the once-massive digital asset
exchange declared bankruptcy. However, a few months later, it is reconsidering
its future and the future of its founder, Sam Bankman-Fried (SBF), who has not
yet been convicted in the alleged misappropriation of client funds.
SBF was
replaced as the CEO by John Ray, who claims that improper fund transfers,
coupled with poorly managed accounting books, were the main reasons for the
collapse of the once-thriving crypto machine.
“The
situation has stabilized, and…
