FTX said it has identified significant shortfalls in both its international and US crypto exchanges.
Bankrupt crypto exchange FTX said in a report to creditors on Tuesday that about $415 million in cryptocurrency was stolen in a hack.
FTX has said it has recovered more than $5 billion in crypto, cash and liquid securities, but this significant shortfall remains on both its international and US crypto exchanges. FTX blamed hacking for some of the shortfall, saying that $323 million in crypto was hacked from FTX’s international exchange and $90 million from its US exchange since it filed for bankruptcy on November 11. were.
Accused founder Sam Bankman-Fried later challenged aspects of the company’s report in a blog post.
Bankman-Fried, who has been accused of stealing billions of dollars from FTX customers to pay off loans made by his crypto-focused hedge fund, Alameda Research, spoke out against FTX’s calculations late Tuesday, saying Pushed back that was presented by the company’s lawyers at Sullivan & Cromwell. A “highly misleading” picture of the company’s finances.
Bankman-Fried said FTX has enough money to repay US customers, whom it says are owed between $181 million and $497 million based on their “best estimates”. Bankman-Fried has not had access to FTX records since stepping down as CEO in November.
A spokesman for Sullivan and Cromwell declined to comment. The firm’s attorneys said in a recent court filing that they have rebuffed Bankman-Fried’s efforts to remain involved in the company’s bankruptcy proceedings.
Bankman-Fried has pleaded not guilty to the fraud charges, and is due to face trial in October.
FTX did not provide an estimate of amounts owed to FTX’s US or international customers, and it did not immediately respond to questions about Bankman-Fried’s blog post.
FTX provided few additional details on Tuesday about its recovery efforts, saying it has recovered $1.7 billion in cash, $3.5 billion in liquid cryptocurrencies and $300 million in liquid securities.
“We are making progress in our efforts to maximize recovery, and it has been an extremely investigative effort by our team to uncover this preliminary information,” Ray said in a statement.
Based on crypto prices on November 11, 2022, that includes $685 million in Solana, $529 million in FTX’s proprietary FTT token, and $268 million in bitcoin. Price in 2022.
During FTX’s initial investigation into the hack of its systems, it disclosed a November asset seizure by the Securities Commission of the Bahamas, which led to a dispute between FTX’s US-based bankruptcy team and Bahamian regulators.
The two sides settled their differences in January, and Ray said Tuesday that the Bahamian government was holding $426 million for creditors.
Bahamas Prime Minister Philip Davis referenced the controversy during a Tuesday event at the Atlantic Council in Washington, saying that Ray’s team had “come around” and acknowledged that the Bahamian asset seizure was “appropriate and probably saved the day for many investors in FTX.”
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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