In an April 12 hearing at the United States Bankruptcy Court for the District of Delaware, lawyers with Sullivan & Cromwell representing FTX reported that the cryptocurrency firm had successfully retrieved roughly $7.3 billion in liquid assets. This is a significant increase from the previous report in March, where the debtors stated that the four FTX company silos had approximately $4.8 billion in scheduled assets as of November 2022, with investigations into the assets still ongoing.
FTX has also expressed intentions to consider relaunching its cryptocurrency exchange operations sometime in the second quarter of 2024, indicating a possible restart as early as April. FTX CEO John Ray had 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.
“Frankly, I have zero evidence to establish cause here,” said Judge John Dorsey. “Mr. Bankman-Fried did not put out any evidence whatsoever as to the balancing of the equities here, what harm is going to occur to him. I don’t know what other insurance policies he has access to, I don’t know what other assets he has access to privately that would allow him to cover these costs and then 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, as it provides 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, it remains to be seen how the recovered assets will impact the company's future operations and whether it will be able to successfully reestablish itself as a major player in the cryptocurrency market.
Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.