Collapsed FTX Crypto Exchange said tuesday he identified $5.5 billion in liquid assets, but said that, based on current estimates, international and U.S. exchanges still face a “substantial shortfall” compared to what trading platforms negotiation owe to customers.
A court document containing the restructuring team’s most recent findings shows that this $5.5 billion includes $1.7 billion in cash, $3.5 billion in crypto assets and $0.3 billion in dollars of securities.
Some $1.7 billion of the company’s assets are held in a “hot wallet,” or internet-connected crypto wallet, which generally makes it less secure. Leading crypto custody provider BitGo keeps another $1.1 billion in more secure “cold storage,” while the Bahamian Securities Commission holds $426 million and FTX Japan has another $140 million.
Another $415 million was stolen hours after the company filed for bankruptcy.
“We are making significant progress in our efforts to maximize recoveries, and it took a Herculean investigative effort by our team to uncover this preliminary information,” said John Ray III, CEO of FTX under the protection of the Privacy Act. bankruptcies, in a press release.
Last Wednesday, a lawyer representing FTX told a federal bankruptcy court the restructuring team had located more than $5 billion in cash, liquid cryptocurrency, and other liquid investments belonging to the company, as well as $4.6 billion in non-strategic illiquid investments.
From the time of this hearing through Tuesday 3 p.m. ET, the total crypto market capitalization increased by $143 billion, or more than 14% to $998 billion from $855 billion, according to CoinMarketCap.
Securities worth $268 million held by Alameda Research include $197 million in shares of the Grayscale Bitcoin Trust (GBTC), $45 million in shares of the Grayscale Ethereum Trust (ETHE), $21 million from the Bitwise 10 Crypto Index Fund (bitw), and $0.1 million in BlackRock (noir) equity.
Worth $253 million, FTX’s total real estate portfolio in the Bahamas comprises 36 different properties.
FTX also confirmed that, based on current estimates of the amount of digital assets associated with the FTX.com and FTX US exchanges as of the date of the petition, “there is a substantial deficit of digital assets on both exchanges.”
“We ask our stakeholders to understand that this information is still preliminary and subject to change. We will provide additional information as soon as we are able to do so,” Ray added in the update.
At press time, the claims market XClaim values claims on FTX’s crypto deposits at 15.5 cents on the dollar.