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Crypto News

Failed Crypto Exchange FTX Sees A Turnaround, Regains Over $7 Billion In Assets

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

failed crypto exchange

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FTX, a crypto exchange that encountered difficulties, has apparently recovered several billion dollars worth of cash and assets as it reevaluates its position.

According to Reuters, the defunct crypto-swapping platform has recovered $7.3 billion in cash and liquid digital assets as the company contemplates how to proceed following its catastrophic collapse last year.

The issue has settled, and the worst is passed, according to FTX lawyer Andy Dietderich, who also told Reuters that FTX had gained substantially from growing crypto values in 2023.

In contrast to Dietderich’s estimate of $7.3 billion based on cryptocurrency values from November 2022, when the company first filed for bankruptcy, the amount recovered by the company would actually total roughly $6.2 billion.

The attorney continues by outlining how FTX is planning for the future. No specifics were provided other than the fact that the corporation might decide to relaunch the crypto exchange before the end of the quarter, but Dietderich claims the company is now in conversations with stakeholders about doing so.

Dietderich points out that the platform’s existing user interface doesn’t actually move much money behind the scenes, so any potential relaunch of the cryptocurrency exchange network would need outside funding or sales of its assets.

Dietderich further adds that, although neither option has been formally planned, another course of action for FTX entails using the funds recovered to reimburse their clients rather than restarting the exchange.

Sam Bankman-Fried, the founder of FTX, is charged with aiding in the company’s demise by deceiving clients and mismanaging client funds totaling billions of dollars. He was most recently charged with buying off Chinese officials. He might spend several years behind bars if found guilty of his allegations.