FTX’s new management has located over $5 billion in liquid assets

Under John Ray, FTX has located more than $5 billion in liquid company-related assets, including cash, liquid cryptocurrency, and liquid stocks.

Location of funds

The new FTX management team has been hard at work.

An attorney representing the defunct crypto exchange, Adam Landis, testified during a hearing today that FTX had recovered more than $5 billion in various assets.

“We have located more than $5 billion in cash, liquid cryptocurrency and liquid investment securities measured at the value of the application date,” said Landis, who works as an attorney at Sullivan & Cromwell. “[It] it simply does not attribute any value to holdings of dozens of illiquid cryptocurrency tokens, where our holdings are so large relative to total supply that our positions cannot be sold without materially affecting the market for the token.”

In other words, the $5 billion figure probably excludes Alameda Research Positions in tokens such as SRM, FIDA, MAPS and OXY. The trading firm had previously given these holdings high valuations on its balance sheet despite its inability to dispose of the tokens without causing their respective markets to crash.

In addition to the $5 billion in liquid assets recovered by FTX, the Bahamas Securities and Exchange Commission currently has $425 million and more than $490 million was seized by the Justice Department on Monday from one of Sam Bankman-Fried’s holding companies. The DOJ is also investigating the identity of the FTX hacker, who stole at least $372 million of the platform on November 12 as it was collapsing.

It is not yet clear how much FTX owes to its creditors. The company indicated in its initial bankruptcy filings that the hole in its balance sheet was between $1 billion and $10 billion.

Disclaimer: At the time of writing, the author of this article owned BTC, ETH, and various other crypto assets.