(The Herald Post) – Bankrupt cryptocurrency exchange FTX has made a substantial recovery, accumulating over $7.3 billion in cash and liquid crypto assets, according to the company’s attorney, Andy Dietderich. Speaking at a U.S. bankruptcy court hearing in Delaware on Wednesday, Dietderich revealed that the recovered amount has increased by more than $800 million since January.
FTX has experienced a boost from the recent uptick in crypto prices, with its total recovery valued at $6.2 billion based on crypto prices from November 2022. The exchange had filed for bankruptcy that month, following traders withdrawing $6 billion from the platform in just three days and Binance abandoning a rescue deal.
New CEO John Ray has exposed poor accounting and improper fund transfers at the collapsed exchange, calling it a “complete failure” of controls. Dietderich announced that FTX is currently in discussions with stakeholders about options for restarting the crypto exchange, with a decision possibly coming this quarter.
FTX customers in Japan have been the only ones able to withdraw funds so far due to the nation’s relatively strong crypto regulations. Restarting the exchange could require significant capital, outside funding, or a sale of the exchange’s assets, as Dietderich explained that the customer interface was more of a facade than a functional system.
Dietderich also noted that FTX is working on a preliminary Chapter 11 plan, aiming to file it by July. However, he anticipates that the plan’s approval might not come until the second quarter of 2024, as creditors vie for their share of the company’s assets.
Ex-founder Sam Bankman-Fried and several company insiders have been indicted on fraud charges related to FTX’s collapse. While Bankman-Fried has pleaded not guilty, former members of his inner circle have pleaded guilty and agreed to cooperate with prosecutors.