FTX logo displayed on a phone screen is seen through the broken glass on this illustration photo taken in Krakow, Poland on November 14, 2022.
Jakub Porzycki/NurPhoto via Getty Images
Bankrupt crypto firm FTX said on Tuesday that $415 million price of crypto was hacked from the exchange’s accounts, representing a sizeable portion of the identified assets the corporate is attempting to get better.
In a presentation titled “Maximizing FTX Recoveries,” lawyers and advisors for FTX debtors updated the entire liquid assets identified for recovery, and said they’re valued at about $5.5 billion.
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Nevertheless, that features “unauthorized third-party transfers” of $323 million out of FTX.com (the international business) and $90 million out of FTX US, the corporate said in a press release. One other $2 million of hedge fund Alameda Research’s crypto was also stolen. The missing crypto may very well be connected to a hack of FTX’s systems that was uncovered shortly after the corporate collapsed in November.
On the time, the stolen crypto was valued at $477 million, based on blockchain analytics firm Elliptic.
FTX filed for bankruptcy after a wave of withdrawals crippled the exchange and sister hedge fund Alameda. Founder and ex-CEO Sam Bankman-Fried was indicted by federal prosecutors on fraud and money laundering charges in December. Bankman-Fried pleaded not guilty to the fees in January, and he’s released on a $250 million bond ahead of his trial, which is about for October.
FTX’s advisors are also reviewing a $2.1 billion share repurchase payment from FTX to crypto exchange Binance within the third quarter of 2021. Binance was the primary outside investor in FTX, but Bankman-Fried bought out Binance’s stake in his company in 2021.
In an appearance on CNBC in December, Binance CEO Changpeng “CZ” Zhao was asked in regards to the potential $2.1 billion clawback as a part of FTX’s bankruptcy proceedings.
“I feel we’ll leave that to the lawyers,” Zhao said, when asked if he was prepared to send the a refund. “I feel our legal team is perfectly able to handling it.”
The 20-page presentation from FTX’s lawyers and advisers provides a breakdown of FTX’s assets and where they’re in search of potential recoveries that may very well be returned to debtors. That features a whole lot of tens of millions of dollars price of property within the Bahamas, where Bankman-Fried lived and ran the corporate.
“We’re making vital progress in our efforts to maximise recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information,” said John Ray, who’s acting as CEO at FTX throughout the restructuring, in Tuesday’s statement.
Despite separating liquid from illiquid tokens, the presentation included $529 million price of FTX’s self-issued token, FTT, under the exchange’s “liquid” assets. FTT has lost over 90% of its value since early November.
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