FTX Recovered $5.5 Billion in Assets But Missing $415 Million in ‘Hacked Crypto’
This photo illustration shows the logo of cryptocurrency FTX, reflected in its website on a laptop screen in Washington, DC, on November 13, 2022.InternationalIndiaAfricaWASHINGTON (Sputnik) – The FTX cryptocurrency firm during a meeting with the US Committee of Unsecured Creditors said that $415 million worth of its crypto was stolen by hackers. “$3.5 billion of identified crypto assets excludes $415mm of hacked crypto,” FTX said in a presentation shared during the bankruptcy meeting on Tuesday. FTX detailed it recovered $3.5 billion of crypto assets, $1.7 billion of cash, and $300 million worth of securities. Founded by Sam Bankman-Fried in 2019, FTX became one of the world’s largest cryptocurrency exchanges. It filed for bankruptcy on November 11, with an estimated one million customers facing billions of dollars in losses. In December, the US government indicted Bankman-Fried in what prosecutors have described as one of the biggest financial fraud cases in US history. Prosecutors allege that FTX violated US campaign finance laws and schemed to misappropriate customer funds. According to Tuesday’s slides, presented by FTX Trading Ltd. and affiliated debtors, they found the assets by tracing and analyzing a database with 14 million addresses and third party exchanges. Americas’I’ll Share in Time’: Former FTX President Declines Question on What He Knew About the Firm9 January, 10:46 GMTSome $1.7 billion of crypto assets were located in Hot Wallet, $1.1 billion in BitGo Cold Storage, and $426 million held in the Bahamas, FTX said. About $1.9 billion in crypto assets were tied to Alameda Research, according to FTX. Real Estate in the Bahamas, comprising 36 properties with a cost basis of $253 million, was also identified, the document said. FTX CEO and FTX Debtors Chief Restructuring Officer, John Ray, said the company asks stakeholders to understand the information provided is preliminary and more will be forthcoming. “We are making important progress in our efforts to maximize recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information,” Ray said as quoted in a press release.