Bankrupt cryptocurrency exchange FTX said in a report to creditors on Tuesday that about $415 million worth of cryptocurrency had been stolen in hacks.
FTX said it has recovered more than $5 billion in cryptocurrencies, cash and liquid securities, but significant gaps remained in its international and US cryptocurrency trading. FTX attributed part of that shortfall to hacks, saying $323 million in cryptocurrencies have been hacked on its international exchange and $90 million on its US exchange since it filed for bankruptcy on Nov. 11.
FTX founder Sam Bankman-Fried later disputed aspects of the company’s relationship in a blog post.
Mr. Bankman-Fried, who has been accused of stealing billions of dollars from FTX clients to pay off debts incurred by his cryptocurrency-focused hedge fund, Alameda Research, disputed FTX’s calculations late Tuesday, saying the The firm’s lawyers for Sullivan & Cromwell had presented an “extremely misleading” picture of the firm’s finances.
Bankman-Fried said FTX has more than enough cash to pay back U.S. customers, who he says they owe between $181 million and $497 million, based on his “best estimate.” Bankman-Fried hasn’t had access to FTX records since he stepped down as CEO in November.
The company’s attorneys said in a recent court filing that they rejected Bankman-Fried’s efforts to remain involved in the company’s bankruptcy proceedings.
Bankman-Fried pleaded not guilty to the fraud charges and his trial is scheduled for October.
FTX provided some additional details about its recovery efforts on Tuesday, saying it recovered $1.7 billion in cash, $3.5 billion in liquid cryptocurrencies and $300 million in liquid securities.
“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 a statement.
Crypto assets recovered to date include $685 million in Solana, $529 million in FTX’s proprietary FTT token, and $268 million in bitcoin, based on the cryptocurrency’s prices on November 11, 2022. Solana, who has t incense from 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 dispute 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 perhaps a lifesaver for many FTX investors.”
Source: FTX
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See also:
Sam Bankman-Fried and his inner circle at FTX had a secret chat group called “Wirefraud”
FTX Collapse prompts other cryptocurrency companies to stop withdrawals
FTX’s crash was a crime, not an accident, by one expert