FTX customers can recover 40% of their funds
As per a new report, FTX’s current leadership team recovered nearly $7 billion and now they are in a situation to give 40% of the customers’ funds back.
FTX was a popular crypto trade platform but in Nov 2022 this firm went bankrupt, as the backend team mismanaged the customer’s fund for personal benefits. FTX co-founder & former CEO Sam Bankman-Fried (SBF) was the main culprit behind the whole backend dark game. At present, SBF is facing nearly a dozen fraud charges, while no fraud or crime charges have been proved against him.
On 27 June 2023, Bloomberg reported that the current FTX leadership team recovered a net $7 billion in funds and owed clients about $8.7 billion when it filed for bankruptcy last year.
The current leadership team also reportedly alleged that old leadership was representing accounts falsely to the bank and this was the main reason why the firm & customers’ fund commingling occurred.
The bankrupt exchange’s net liabilities are nearly $15 billion, which means FTX exchange is now in a situation to give refunds of nearly 40% of the funds to the customers.
FTX stops AI asset liquidation
Before bankruptcy, FTX & its affiliated crypto hedge firm Alameda Research invested $500 million in an Artificial intelligence (AI) startup.
As per recent reports, the FTX team stopped the liquidation of the stakes from this startup, as there is an opportunity for the exchange to generate new money for the customers.
The Bloomberg report also noted that FTX & Alameda allocated nearly $1.5 billion investment in cryptocurrency miner Genesis Digital, which was potentially a very risky investment because of the low probability of profits. To date, it is unconfirmed why FTX invested in such bad business.
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