Finance & Economics

FTX Lawyers Recover Billions and Bill Millions Investigating Exchange Reboot

FTX lawyers are exploring the possibility of restarting this cryptocurrency exchange.

FTX Lawyers Recover Billions and Bill Millions Investigating Exchange Reboot

Source: motionarray.com

The collapse of the crypto exchange provoked the destabilization of the situation in the global cryptocurrency market. Also, after this event, creditors were left alone with claims for $ 11.6 billion.

Lawyers of the bankrupt crypto exchange are considering giving the business another chance. As of April 12, 2023, the number of assets
of FTX debtors was equal to $7.3 billion.

During a hearing last Wednesday before federal bankruptcy judge John Dorsey, the crypto exchange’s lawyers announced that they were considering restarting this platform to eliminate the gap in asset requirements and transfer millions of FTX customers to the category of active users.

A few days earlier, the debtors of the crypto exchange in their latest report sharply criticized the company and previous managers, including the founder of paper billionaire and the alleged criminal Sam Bankman-Fried.

Bankman-Fried continues to defend the position that the collapse of the crypto exchange was not the result of his actions and adheres to statements of his innocence on the fact of more than 10 charges.

Lawyer Sullivan & Cromwell (S & C) Andy Dietderich said during the hearing that the situation has now stabilized and noted that the fire, by which symbolically was marked the state of affairs after the FTX crash extinguished.

FTX co-founder and engineering executive Gary Wang, who pleaded guilty to four criminal charges over the collapse of the company and is cooperating with federal authorities, provided financial assistance so that debtors could recover their assets. The lawyers informed the court about this.

New FTX CEO John J. Ray was tasked with creating as much value as possible for the creditors of the bankrupt exchange.

The presentation filed in the Delaware court shows that FTX category A crypto assets are steadily increasing in price. This is because the global crypto asset market has begun to recover after the disaster at the end of 2022. The price increase led to the fact that FTX assets increased by $ 900 million.

Category A assets are crypto tokens with a market capitalization of at least $15 million and an average daily trading volume of at least $1 million over the past 30 days.

Many alternative digital assets on the FTX balance sheet are stored in such large quantities that there is no way to sell them on the open market without significantly affecting their value. Restarting the exchange is important to facilitate mediation on the return to the market.

As we have reported earlier, FTX EU Launches Withdrawal Website.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.