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The FTX logo displayed on a phone screen is visible through broken glass in this illustration photo taken in Krakow, Poland November 14, 2022.

Jakub Porzycki/NurPhoto via Getty Images

Bankrupt Crypto Firm FTX said On Tuesday, $415 million worth of crypto was hacked from the exchange’s accounts, representing a significant portion of the identified assets the company is trying to recover.

In a presentation titled “Maximizing FTX Recoveries”, attorneys and advisers for FTX Debtors updated the total liquid assets identified for recovery and said they were valued at approximately $5.5 billion.

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However, that includes “unauthorized third-party transfers” of $323 million from (the international business) and $90 million from FTX US, the company said in a statement. Another $2 million worth of crypto from hedge fund Alameda Research was also stolen. The missing crypto could be connected to a To hack of FTX Systems which was discovered shortly after the company went bankrupt in November.

At the time, the stolen crypto was valued at $477 million, according to blockchain analytics firm Elliptic.

FTX filed for bankruptcy after a wave of withdrawals crippled the exchange and sister hedge fund Alameda. Founder and former CEO Sam Bankman-Fried was indicted by federal prosecutors for fraud and money laundering in December. Bankman Fried pleaded not guilty of the charges in January, and he is freed on $250 million bind ahead of his trial, which is scheduled for October.

FTX advisors are also review of a $2.1 billion share buyback payment of FTX to crypto exchange Binance in Q3 2021. Binance was the first outside investor in FTX, but Bankman-Fried bought out Binance’s stake in his company in 2021.

During an appearance on CNBC in December, Binance CEO Changpeng “CZ” Zhao was asked about the potential recovery of $2.1 billion in FTX’s bankruptcy proceedings.

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“I think we’ll leave that to the lawyers,” Zhao said, when asked if he was willing to return the money. “I think our legal team is perfectly capable of handling it.”

The 20-page presentation from FTX’s attorneys and advisers provides a breakdown of FTX’s assets and where they are looking for potential recoveries that could be returned to debtors. This includes hundreds of millions of dollars in assets in the Bahamas, where Bankman-Fried lived and ran the business.

“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, who is serving as CEO of FTX during the restructuring. , in Tuesday’s statement.

Despite the separation of liquid from illiquid tokens, the presentation included $529 million in self-issued tokens from FTX, FTT, under the exchange’s “liquid” assets. The FTT has lost more than 90% of its value since early November.

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