FTX asset recovery update: Debtors identify $5.5B in cash, crypto, securities

FTX Trading ( FTT-USD ) and its affiliated debtors, together known as FTX debtors, said they have identified around $5.5B of sellable assets through Tuesday in the wake of the new leadership's attempts to recover lost assets to repay creditors of the bankrupt cryptocurrency exchange. In a meeting with the Official Committee of Unsecured Creditors ("UCC"), FTX debtors said the liquid assets identified so far were comprised of $1.7B in cash, $3.5B in crypto assets and $300M in securities. Last week, FTX advisors were said to have secured over $5B in cash and liquid crypto. They noted there is a "substantial shortfall of digital assets" at both FTX.com, the international exchange, and FTX US, the American exchange. For FTX.com, the FTX debtors identified ~$1.6B of digital assets, of which $323M was subject to unauthorized third-party transfers after the petition date of Nov. 11, 2022, $426M of which was transferred to cold storage under the control of The Securities Commission of The Bahamas, $742M of which is in cold storage under the control of the FTX debtors, and $121M of which is pending transfer to cold storage under the control of the FTX debtors. With respect to FTX US, some $181M was found by FTX debtors, of which $90M was subject to unauthorized third-party transfers post-petition, $88M of which is in cold storage under the control of the FTX debtors, and $3M of which is pending transfer to cold storage under the control of the FTX debtors. "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," said John J. Ray III, CEO and chief restructuring officer of the FTX debtors. "We ask our stakeholders to understand that this information is still preliminary and subject to change. We will provide additional information as soon as we are able to do so." Last week, (Jan. 13) bankruptcy judge OKs FTX's sale of key units to recover lost funds .