The company tasked with locking down the assets of the failed cryptocurrency exchange FTX says it has managed to recover and secure USD740 million in assets so far, a fraction of the potentially billions of dollars likely missing from the company's coffers. The numbers were disclosed on Wednesday in court filings by FTX, which hired the cryptocurrency custodial company BitGo hours after FTX filed for bankruptcy on November 11. The biggest worry for many of FTX's customers is they'll never see their money again. FTX failed because its founder and former CEO Sam Bankman-Fried and his lieutenants used customer assets to make bets in FTX's closely related trading firm, Alameda Research. Bankman-Fried was reportedly looking for upwards of USD8 billion from new investors to repair the company's balance sheet. Bankman-Fried "proved that there is no such thing as a safe' conflict of interest, BitGo CEO Mike Belshe said in an email. The USD740 million figure is from November 16. BitGo ...
Lawyers for FTX disclosed Tuesday that a "substantial amount" of assets has been stolen from the accounts of the collapsed cryptocurrency exchange, diminishing the odds that its millions of investors will get their money back. The admission came during FTX's first court appearance since the company filed for bankruptcy protection on November 11. Such hearings typically happen days after a filing, but this one was delayed because FTX's collapse came suddenly and management kept few if any records. "This company was run by inexperienced, unsophisticated and potentially personally compromised individuals," said James Bromley, a partner with Sullivan & Cromwell, the law firm hired by FTX's debt holders to navigate the company through bankruptcy. "It is one of the most abrupt and difficult company collapses in the history of corporate America." FTX, short billions of dollars, sought bankruptcy protection after the exchange experienced the crypto equivalent of a bank run. The company ...
Says he's never seen such a "complete failure" of corporate control
IBBI says while this reflects extent of value erosion by the time a corporate debtor enters CIRP, it remains the highest among all options available to creditors for recovery
The imploding cryptocurrency trading firm FTX is now short billions of dollars after experiencing the crypto equivalent of a bank run. The exchange, formerly one of the world's largest, sought bankruptcy protection last week, and its CEO and founder resigned. Hours later, the trading firm said there had been unauthorised access and that funds had disappeared. Analysts say hundreds of millions of dollars may have vanished. The unravelling of the once-giant exchange is sending shockwaves through the industry. Here's a look at the company's collapse so far: WHY DID FTX GO BANKRUPT? Customers fled the exchange over fears about whether FTX had sufficient capital, and it agreed to sell itself to rival crypto exchange Binance. But the deal fell through while Binance's due diligence on FTX's balance sheet was still pending. FTX had valued its assets between USD 10 billion to USD 50 billion, and listed more than 130 affiliated companies around the world, according to its bankruptcy filing
It's unclear exactly who's making the transactions, but you wouldn't expect to see these on-chain trades at this time: Alex Svanevik, chief executive officer at Nansen
The collapse this week of FTX dealt another blow to the cryptocurrency industry, which has seen severe volatility and bankruptcies of other high-profile firms, including Celsius Network Ltd
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