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This is a history in development, and more information will be added as it becomes available. According to FTX lawyer Andy Dietderich, the cryptocurrency swap "picked up 5 billion dollars in cash and liquid cryptocurrencies." However, the stock market "is still working on reconstructing the transaction history," and the total amount of the client deficit is "still uncertain."
Speaking to a U.S. bankruptcy judge in Delaware on Jan. 11, Dietderich also stated that the company plans to sell $4.6 billion worth of non-strategic investments, including subsidiaries such as LedgerX, Embed, FTX Japan and FTX Europe. Corporations are at arm's length from ftx with separate accounts. FTX Japan has already drafted plans to return customer funds. Furthermore, ftx will terminate its 2021-2028 sponsorship agreement with the popular multiplayer online battle game legends league.
Cointelegraph previously reported that FTX had $8.8 billion in total liabilities. At the time, sources reported that the stock market had very little liquidity and digital assets, a hole estimated at $8 billion in its balance sheet. At the Jan. 11 hearing, ftx received leave from the court to keep client names secret for three months after clients raised potential concerns about identity theft.
Sam Bankman-Fried, the disgraced founder of FTX, has pleaded not guilty to all criminal charges related to the exchange’s fallout. The United States Attorney’s Office for the Southern District of New York has formed a task force to “trace and recover” missing FTX customer funds and handle investigations and prosecutions related to the exchange’s collapse. U.S. lawmakers previously called on the court to approve an “independent examiner” in FTX’s bankruptcy case after concerns over conflicts of interest, but it was dismissed by the presiding judge.
US lawmakers have already asked the court to approve an "independent reviewer" in FTX's bankruptcy case after concerns over conflicts of interest.
