• FTX, a crypto exchange that fell apart in November 2020, has recovered more than $7.3 billion in assets.
• Sam Bankman-Fried, the executive behind FTX, was arrested and extradited for investing customer funds in luxury Bahamian real estate and to pay off loans taken out by his other company Alameda Research.
• The rise of crypto prices has helped the company recover more funds as part of its bankruptcy proceedings.
FTX Has Recovered Over $7 Billion
At a recent hearing in Delaware, it was announced the now defunct crypto exchange FTX – which fell apart in November of last year – has recovered more than $7.3 billion in assets at the time of writing. This is an increase of more than $800 million since the month of January.
FTX Working to Pay Off Loans
The company is working to garner as many funds as it can to pay off some of its loans as part of its bankruptcy proceedings, which it first entered roughly six months ago according to FTX attorney Andy Dietderich.
SBF’s Quick Rise & Fall
First coming to fruition in the year 2019, FTX required only three years to come out as one of the world’s top five digital currency trading platforms. The company was overseeing billions in trades, and Sam Bankman-Fried – the main executive behind it – was lauded as a genius by many (his net worth was also in the billions towards the end of 2022). Sadly, this reputation was short-lived as SBF complained of a liquidity crunch on social media and eventually turned to his biggest rival Binance about a possible buyout. Binance eventually backed away from the deal due to problems too big for them handle leading SBF to resign from his post and file bankruptcy shortly afterwards. It was later discovered that he had utilized customer funds for personal gain leading him to be arrested and extradited back to America where he awaits trial at his parents’ California home.
Crypto Prices Have Helped
One of the big things that has helped FTX in the long run is how much crypto prices have come along within just weeks with BTC reaching up over $30K recently compared from where it was at the end last year ($18K). The sharp rise has enabled FTX with additional funds recovery efforts during its bankruptcy proceedings.
FTX has managed so far recover more than $7 billion dollars while working on paying off its loan during its bankruptcy process while also navigating through Sam Bankman-Fried’s arrest and extradition for utilizing customer funds for personal gain. Crypto asset prices surge lately have been beneficial for their efforts moving forward with recovery .