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FameEX Hot Topics | FTX's Recovery of $7.3B in Assets Prompts Consideration of Exchange Relaunch

2023-04-13 11:14:00

On April 12, lawyers representing FTX at the United States Bankruptcy Court for the District of Delaware reported that the cryptocurrency firm had successfully retrieved approximately $7.3 billion in liquid assets. This marks a significant increase from the previous report in March, which stated that the four FTX company silos had around $4.8 billion in scheduled assets as of November 2022, with ongoing investigations into the assets. FTX has expressed intentions to consider restarting its cryptocurrency exchange operations sometime in the second quarter of 2024, with a possible reboot as early as April. FTX CEO John Ray reportedly discussed the possibility of reviving the bankrupt exchange in a January interview.

However, during the same hearing, the bankruptcy judge denied a motion that would have allowed the court to prioritize reimbursing former FTX CEO Sam “SBF” Bankman-Fried's legal fees. The judge left the door open for SBF to present evidence to the court in the future regarding the motion. Judge John Dorsey stated that he had no evidence to establish cause and that SBF did not provide any evidence regarding the balancing of the equities and the potential harm that may occur to him. The judge also noted that he did not know what other insurance policies or private assets SBF had access to that could cover the costs and allow him to recover them later under this policy.

The bankruptcy court proceedings followed the announcement by the debtors that a Swiss court had granted a petition allowing the sale of FTX Europe AG, the firm’s European arm. FTX Europe AG, along with 133 other subsidiaries, was part of FTX’s Chapter 11 filing in U.S. bankruptcy court in November 2022. The successful recovery of $7.3 billion in assets is a positive development for FTX, providing the firm with a solid financial foundation to potentially restart its exchange operations. However, the denial of the motion to prioritize reimbursing SBF's legal fees may have implications for the former CEO's involvement in the bankruptcy proceedings.

As FTX moves forward with its plans to reboot its exchange, the impact of the recovered assets on the company's future operations and its ability to reestablish itself as a major player in the cryptocurrency market remains to be seen.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

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