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Samuel Bankman-Fried’s bankrupt FTX exchange executives find $1.24 billion cash, not enough to pay creditors

  • Samuel Bankman-Fried’s FTX exchange owes creditors $3.1 billion, executives reported that the platform has $1.24 billion cash in banking institutions. 
  • Bankrupt FTX exchange’s restructuring team discovered about $720 million in unconsolidated cash assets in US financial institutions. 
  • US banks and financial institutions are holding another $500 million, CEO John Ray III and his team will keep following the money to secure more assets. 

Samuel Bankman-Fried’s FTX exchange, now defunct and bankrupt, is currently in the financial restructuring process. FTX exchange’s executives have located and secured nearly $1.24 billion in cash, from US banking and financial institutions. 

CEO John Ray III and a team of restructuring executives are “following the money” to secure assets and return the $3.1 billion owed to the collapsed exchange’s creditors. 

Also read: Samuel Bankman-Fried could face a maximum sentence of 115 years in prison for FTX exchange collapse

Samuel Bankman-Fried’s FTX exchange finds $1.24 billion with US financial institutions

Samuel Bankman-Fried (SBF), the former CEO of bankrupt FTX exchange is currently in prison in the Bahamas. While the former billionaire awaits his extradition to the United States, the financial restructuring team at FTX exchange has located $1.24 billion in cash assets in US institutions. 

FTX exchange’s new CEO John Ray III and the financial restructuring executives are currently following the trail of customer funds as they flowed out of the bankrupt platform, to other entities in Japan, and the United States. 

Mary Cilia, the collapsed platform’s new CFO told CoinDesk, 

We are reaching out to all of those banks and changing the signatories on the accounts so that we can get access to the accounts and move the cash as much as we can to authorized depository institutions.

Cilia said that the team has located $130 million of cash locked up in Japan and another $6 million is being kept aside for operational expenses. While there are several unknowns about FTX’s corporate structure and poor record keeping prior to its bankruptcy filing on November 11, CEO John Ray III’s team is following the money to secure more assets. 

The exchange founded by SBF owes creditors $3.1 billion. It is essential to locate more cash assets to make customers whole. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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