Asset of around $5bn has been recovered from FTX the crypto giant
Key Takeaways:
- FTX, a defunct cryptocurrency exchange, allegedly had more than $5 billion (£4.1 billion) in assets, according to a company attorney.
- Court documents mentioned Tom Brady, his ex-wife Gisele Bündchen, and New England Patriots owner Robert Kraft.
An attorney for the company claims that the defunct cryptocurrency exchange FTX has found more than $5 billion (£4.1 billion) in assets.
However, a US bankruptcy court was informed on Wednesday that it is still unknown how much money customers have lost.
Sam Bankman-Fried, the former CEO of FTX, is accused by prosecutors of planning an “epic” fraud that may have cost investors, clients, as well as lenders billions of dollars.
A charge that Mr Bankman-Fried defrauded investors has been met with his plea of not guilty.
According to Andy Dietderich, an attorney for FTX, “We have located over 5 billion dollars in cash, liquid cryptocurrency, and liquid investment securities” in Delaware.
As per Mr Dietderich, some assets were seized by the Securities Commission of the Bahamas, where FTX had its headquarters and also where Mr Bankman-Fried was residing at the time of his arrest. He asserted that the money recovered does not include those assets.
The hearings have not revealed the names of most of FTX’s clients and investors who have suffered losses.
However, Tom Brady, his ex-wife Gisele Bündchen, and New England Patriots owner Robert Kraft were all mentioned in court documents.
The 30-year-old was detained in the Bahamas in December and then extradited to the US. He is charged with carrying out “one of the largest financial frauds in US history.”
On November 11, FTX, which had a $32 billion market value a year prior, filed for bankruptcy protection. $8 billion in customer funds are thought to have gone missing.
Federal US prosecutors accuse Mr Bankman-Fried of using money from FTX customers without authorization to pay his company Alameda Research’s debts and make other investments.
In December, the prosecution made public eight criminal charges, such as wire fraud, money laundering, and violations related to campaign finance. Additionally, claims have been made against Mr Bankman-Fried by financial regulators.
In connection with their alleged roles in the company’s demise, Caroline Ellison, the former CEO of Alameda, and FTX co-founder Gary Wang have also been charged. They both reportedly cooperated with the investigation, according to authorities.
Mr Bankman-Fried was granted $250 million in bail and released from custody at the end of December, with the restriction that he remains at his parents’ house in California.
Before his arrest, he spoke with BBC News and said, “I didn’t purposefully engage in fraud. I don’t believe I defrauded anyone. All of this was something I wanted to avoid. Not as competent as I had thought I was.”
