FTX team makes progress in securing assets, recovering $7B so far

Cryptocurrency exchange FTX's ( FTT-USD ) new management team is making progress in securing assets to repay creditors, recovering about $7B in liquid assets so far, according to a Monday release. Based on ongoing analysis, the FTX.com exchange owed its customers around $8.7B when it filed for Chapter 11 bankruptcy protection in November 2022. Most of the shortfall -- over $6.4B -- was "in the form of fiat currency and stablecoin that had been misappropriated." The report noted that Sam Bankman-Fried's FTX Group, accused of commingling and misusing customer deposits, lied to a bank about the nature of sister firm Alameda's bank account, which was used to handle customer funds. “The image that the FTX Group sought to portray as the customer-focused leader of the digital age was a mirage,” said FTX CEO John J. Ray III. "From the inception of the FTX.com exchange, the FTX Group commingled customer deposits and corporate funds, and misused them with abandon at the direction and by the design of previous senior executives." More on FTX FTX already faces $200M in bankruptcy fees FTX seeks to claw back more than $240M related to Embed acquisition MIAX agrees to acquire FTX Trading's LedgerX unit FTX Europe approved by Swiss court to explore potential sale