On April 12, during a hearing in the United States Bankruptcy Court for the District of Delaware, Sullivan & Cromwell‘s legal team representing FTX revealed that the cryptocurrency exchange has recovered around $7.3 billion in liquid assets. This development followed a March report by the debtors, which indicated that FTX’s four silos held about $4.8 billion in scheduled assets as of November 2022, with an ongoing investigation into the assets.
The legal team also disclosed that FTX is contemplating restarting its crypto exchange operations in the second quarter of 2024, suggesting a potential reboot as early as April of that year. This possibility was previously hinted at by FTX CEO John Ray in a January interview. Notably, FTX Token (FTT) experienced a significant surge in price, rising from $1.32 to $2.80, a rise of more than 112%, when the lawyers announced the potential reboot of the exchange. The token had largely remained within the $1 to $2 range since the company’s bankruptcy filing.
In the same hearing, a motion to prioritize reimbursing former FTX CEO Sam Bankman-Fried‘s legal fees was denied by the bankruptcy judge. However, the door was left open for SBF to present evidence to the court in the future regarding the motion.
The bankruptcy court proceedings followed the announcement that a Swiss court had granted permission to sell FTX Europe AG, the firm’s European arm, which was among the 133 other subsidiaries included in FTX’s Chapter 11 filing in U.S. bankruptcy court in November 2022.
Links:
- Sullivan & Cromwell: https://www.sullcrom.com/
- FTX: https://ftx.com/
- United States Bankruptcy Court for the District of Delaware: https://www.deb.uscourts.gov/
- FTX Token (FTT): https://ftx.com/ftt
- Sam Bankman-Fried: https://twitter.com/SBF_Alameda
- Image Source: Reuters
