About $323 million in cryptocurrencies have been breached by the international FTX exchange and $90 million from its U.S. stock exchange since it filed for bankruptcy on Nov. 11, CEO John Ray said in a separate statement on Tuesday.
FTX founder Sam Bankman-Fried has been accused of stealing billions of dollars from FTX clients to pay off debts incurred by his cryptocurrency-focused hedge fund, Alameda Research. Bankman-Fried pleaded not guilty to the fraud charges.
Last week, FTX told a Delaware bankruptcy judge it had recovered more than $5 billion in cryptocurrencies, cash and liquid securities, nine weeks after filing for bankruptcy.
The company provided more details on Tuesday, saying it recovered $1.7 billion in cash, $3.5 billion in liquid cryptocurrencies and $300 million in liquid securities.
FTX did not provide an estimate of total liabilities, but said it had identified significant shortcomings in its US and international cryptocurrency exchanges.
“We are making progress in our efforts to maximize recoveries and it has taken a herculean investigative effort by our team to uncover this preliminary information,” Ray said in the statement.
Crypto assets recovered to date include $685 million in Solana, $529 million in FTX-owned FTT tokens, and $268 million in bitcoin, based on the cryptocurrency’s prices on Nov. 11, 2022. Solana, which was praised by Bankman-Fried, has lost most of its value in 2022.
During FTX’s initial investigation into hacks to its system, it uncovered an asset seizure in November by the Bahamas Securities Commission, leading to a dispute between US-based bankruptcy team States of FTX and the authorities Regulatory Authority of the Bahamas.
The two sides settled their differences in January, and Ray said on Tuesday the Bahamian government had $426 million in creditors.
Bahamian Prime Minister Philip Davis referred to the controversy at an Atlantic Council event in Washington on Tuesday, saying Ray’s team had “changed its mind” and agreed that the seizure of Bahamian assets “was appropriate and may have saved the day for many FTX investors.”