As part of its bankruptcy proceedings, representatives of the FTX Group have revealed that they have identified more than $1 billion in assets in hundreds of bank accounts. This news comes in a context where the group’s incomplete financial documentation complicates the traceability of its funds.
Billion Dollar Discovery
According to information relayed by Coindesk, FTX’s New Management Just Identified Over $1 Billion in Assets in the Company’s Bank Accounts. In office since the resignation of Sam Bankman-Fried last November, current CEO John Ray III is trying to administer the company’s bankruptcy by limiting its financial and human consequences.
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Currentlyaround $720 million in assets were traced across hundreds of bank accounts. These funds will be redirected to US institutions approved by the US Department of Justice, as FTX Group Chief Financial Officer Mary Cilia points out:
“We contact all the banks and change the signatories of the accounts in order to have access to them, and thus transfer as much cash as possible to authorized depository institutions. »
Furthermore, the firm has identified almost an additional $500 million already held by U.S. institutions, as well as $130 million located in Japanese institutions. However, the Japanese authorities have frozen access to these assets to give priority to reimbursing customers in their archipelago.
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Disastrous management of funds
Last November, when John Ray III was analyzing the financial management of the firm, his conclusion was clear : of the ” unacceptable practices were made with company funds. Between the absence of a security protocol, frenzied spending and incomplete financial documentation, the financial security of the group could only be compromised.
Consequently, the search for funds that still exist is particularly complex for the company’s teamsespecially since a large part of the funds stored on the FTX exchange were correlated to its token (FTT), the value of which has fallen by 96% since the beginning of November.
Now under Chapter 11 bankruptcy protection in the United States, the new managers of the structure are mobilizing to recover the management of a maximum of assets. In a bankruptcy hearing, FTX financial advisor Steve Coverick said that “continuous efforts“were being deployed to keep the remaining assets safe.
However, gray areas still remain to be elucidated : while American legislation requires companies in bankruptcy to file a balance sheet of their financial situation, the teams of the FTX group estimate that they will be able to issue it only in April 2022.
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Source: Coindesk
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Always enthusiastic about new technologies, I gradually moved closer to Web3-related activities during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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