Over $5 billion in assets have been recovered from FTX

On November 11, FTX, which had a $32 billion market value a year prior, filed for bankruptcy protection.

A counsel for the company claims that the defunct cryptocurrency exchange FTX has recovered more than $5 billion (£4.1 billion) in assets.

The magnitude of consumer damages is yet unknown, a US bankruptcy court was informed on Wednesday.

Sam Bankman-Fried, the former CEO of FTX, is charged by prosecutors of planning an “epic” scam that may have cost investors, clients, and lenders billions of dollars.

A claim that Mr. Bankman-Fried defrauded investors has been met by his plea of not guilty.

According to Andy Dietderich, an attorney representing FTX, “We have discovered almost 5 billion dollars in cash, liquid cryptocurrency, and liquid investment securities.”

The Securities Commission of the Bahamas, where FTX had its headquarters and where Mr. Bankman-Fried was residing at the time of his arrest, seized some assets, according to Mr. Dietderich, who claimed that the sums recovered do not include those.

The proceedings have not revealed the names of the majority of FTX’s clients and investors who have suffered losses.

Tom Brady, his ex-wife Gisele Bündchen, and New England Patriots owner Robert Kraft were all addressed in court documents, though.

Federal US prosecutors accuse Mr. Bankman-Fried of using money from FTX clients without authorization to pay his company Alameda Research’s bills and make other investments.

The 30-year-old was detained in the Bahamas in December and then deported to the US. 

He is charged with carrying out “one of the largest financial frauds in US history.”

Eight criminal charges, including wire fraud, money laundering, and crimes related to campaign funding, were made public by the prosecution in December.

Additionally, claims have been made against Mr. Bankman-Fried by financial regulators.

In connection with their alleged participation in the collapse of the company, Caroline Ellison, the former CEO of Alameda, and FTX co-founder Gary Wang have also been charged. 

They both reportedly cooperated with the inquiry, according to authorities.

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