FTX Unearths More Than $5B In Cash & Assets

FTX has found more than $5 billion in cash and liquid assets, company attorneys said.

In a hearing Wednesday (Jan. 11) in U.S. Bankruptcy Court in Wilmington, Delaware, lawyers for the failed cryptocurrency company said FTX hopes to sell hundreds of other holdings valued at north of $4.6 billion, The Wall Street Journal (WSJ) reported.

Those assets do not include the $425 million being held by Bahamian authorities, the report said.

The attorneys told Judge John Dorsey that the size of the shortfall in FTX customer funds has yet to be determined, according to the report.

Attorney Andrew Dietderich said, per the report, the company’s new management is “building financial statements from the ground up,” instead of relying on previous statements.

Read more: Bahamas Securities Commission Reports Seizing $3.5B In FTX Assets

The company is also “well underway on plans to monetize over 300 other non-strategic investments, with a book value over $4.6 billion,” Dietderich said in the report.

Last month, new FTX CEO John J. Ray III told the House Financial Services Committee that the company’s corporate infrastructure and record-keeping before his arrival had been “near-zero.”

“Although our investigation is ongoing and detailed findings will have to await its conclusion, the FTX Group’s collapse appears to stem from the absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company that is entrusted with other people’s money or assets,” Ray said in the prepared testimony.