• FTX, a crypto exchange that went defunct in November of 2020, has recovered more than $7.3 billion in assets as of May 2023.
• The company is working to pay off its loans and may reopen in the future.
• It was discovered that the former executive behind FTX, Sam Bankman-Fried, had misused customer funds for investments and loan payments, leading to his arrest and extradition back to the US.
FTX Recovers Assets
At a recent hearing in Delaware, it was announced that now defunct crypto exchange FTX – which fell apart in November of last year – has recovered more than $7.3 billion in assets at the time of writing. This is an increase of more than $800 million since January. The company is attempting to pay off its loans as part of its bankruptcy proceedings and may reopen in the future according to FTX attorney Andy Dietderich.
FTX’s Rapid Rise & Fall
First coming to fruition in 2019, FTX quickly rose up as one of the world’s top five digital currency trading platforms and oversaw billions in trades with executive Sam Bankman-Fried being lauded as a genius (his net worth was also reportedly high). In mid-November however, SBF complained of a liquidity crunch on social media and attempted to negotiate a buyout with rival Binance before filing for bankruptcy later on that month when the deal fell through.
Misuse Of Funds
It was later discovered that SBF had utilized customer funds to invest in luxury Bahamian real estate and to pay off loans taken out by his other company Alameda Research which led to his arrest and extradition back to the United States where he awaits trial at his parents’ home while entering not guilty plea.
Rising Prices Helping Out
The rise of crypto prices over recent weeks have helped out greatly with Bitcoin reaching a whopping $30K at some point recently – an improvement from where it was at towards end of last year during which time it had much lower values than what it currently holds now.
Despite all this turmoil however, FTX has been able reclaim many lost assets though much still remains uncertain regarding what will happen with this platform moving forward whether or not it will be able reopen for business once again remains up in the air for now but hopefully things will take an upturn soon enough especially with more cryptocurrencies gaining value each day