The current team of the FTX exchange proved that it is working with full responsibility, to save the FTX creditors.
Johan J Ray III is the current CEO of the FTX exchange and in his leadership, the FTX team collects all the funds which were sent to other parties illegally & unethically, on behalf of the FTX’s former officials. Sam Bankman-Fried (SBF) was the main culprit behind the downfall of the exchange, who misused the user’s fund blindly for personal benefits.
Recently in a Delaware Court, Adam Landis, an attorney of the FTX bankruptcy team, told the U.S. bankruptcy judge that the FTX team collected at least $5 billion worth of funds. In these collected funds Bahamian authorities’ seized FTX funds are excluded.
As of Dec 2022, Bahamian authorities are holding $170 million worth of FTX’ remaining Crypto funds, which is volatile. Initially, FTX filed for bankruptcy on 11 Nov 2022 & before that date total valuation of the FTX exchange was $32 billion.
FTX bankruptcy attorney noted that FTX holds a big amount of crypto assets in the form of liquid money and the team can’t sell these assets because it will surely impact the price of these assets, which will not be a good thing for the Crypto sector.
FTX, Alameda Research & Bankruptcy
In early Nov 2022, a few reports noted that FTX’s sister company was holding the majority of the funds in FTX tokens (FTT). Later Binance exchange’ announcement to sell the FTT token holdings acted as a catalyst to create huge fear among the FTX customers.
Under a very high-pressure sell situation, FTX failed to give withdrawal of the funds to all the users and finally on 11 Nov filed for bankruptcy.
Sam Bankman-Fried (SBF), who is facing multiple charges of fraud, is the former CEO & co-founder of the FTX exchange. He used the FTX customer’s fund for multiple types of personal benefits, which was illegal.