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At a recent hearing in Delaware, it was announced the now defunct crypto exchange FTX – which fell apart in November of last year – has recovered more than $7.3 billion in assets at the time of writing. This is an increase of more than $800 million since the month of January.
FTX Is Trying to Pick Itself Up
The company is working to garner as many funds as it can to pay off some of its loans as part of its bankruptcy proceedings, which it first entered roughly six months ago. The company is fully down in the dumps and is considering reopening in the future at some point according to FTX attorney Andy Dietderich. In a recent interview, he stated:
The situation has stabilized, and the dumpster fire is out.
First coming to fruition in the year 2019, FTX required only three years to come out as one of the world’s top five digital currency trading platforms. The company was overseeing billions in trades, and Sam Bankman-Fried – the main executive behind it – was lauded as a genius by many (his net worth was also in the billions towards the end of 2022).
Sadly, this reputation was short-lived as in mid-November, SBF complained of a liquidity crunch on social media. He said he needed fast cash to keep his business in operation, and he eventually turned to his biggest rival Binance about a possible buyout. While things appeared to be moving in that direction for some time, Binance eventually backed away from the deal, claiming the problems FTX was facing were simply too big for it to handle.
From there, the company filed bankruptcy and SBF resigned from his post. Things would have been bad enough if they had stopped there, but the trash meter kept rising. It was later discovered that SBF had utilized customer funds to invest in luxury Bahamian real estate and to pay off loans taken out by his other company Alameda Research. He was eventually arrested and extradited back to the United States. He has entered a not guilty plea and is awaiting trial at his parents’ California home.
Rising Prices Have Helped
One of the big things that has helped FTX in the long run is how much crypto prices have come along in just the past few weeks. For example, BTC rose to a whopping $30K some time ago, a big improvement from where it was at the end of last year (during that time, it was trading in the mid-$16K range).
Should the company decide to open its doors once again for business, the choice will be left up to the new CEO John Ray III, though Dietderich mentioned that it’s going to be a while before the enterprise can come back in such a way.