FTX, the defunct but once-thriving centralized crypto exchange, has recovered $7.3 billion in cash and liquid crypto assets as of April 12. Accordingly, the popular trading platform is considering a comeback.
Following the collapse of the FTX exchange in November due to liquidity crunches which led to Sam Bankman Fried being sued for multiple crimes, the new executives have been focused on recovering the company’s resources. Recall that the FTX ex-founder gave $400 million to a hidden co-founded by his one-time lover.
Andy Dietderich, FTX senior attorney, disclosed on Wednesday at a United States bankruptcy court hearing in Delaware that the bankrupt company has now recovered $7.3 billion in undisclosed liquid crypto assets and cash, according to Reuters. Notably, over $800 million and counting has been recovered by the company between January and April.
Dietderich added that FTX is now thinking of its future having recovered these amounts since the unfortunate incident that occurred under the regime of SBF, submitting that “the situation has stabilized, and the dumpster fire is out.”
Speaking on FTX’s future, the lawyer stated that the exchange is still considering the best way to utilize the recovered funds. According to him, it is unclear whether the funds would be expended to settle previously affected customers or used to reactivate the exchange. But the sure thing is that restarting the exchange would require large capital.
It bears mentioning that FTX is indebted to the San Francisco-based cross-border payment firm, Ripple. According to Brad Garlinghouse, the crypto solutions company leased $10,000,000 worth of XRP to the imploded FTX.
Nonetheless, the company’s attorney revealed that FTX may resume operations this second quarter of 2023 as dialogue is currently ongoing between FTX’s new executives with stakeholders on the matter.
While full-blown operations are yet to be activated on the exchange, he noted that customers in Japan have been the only ones able to withdraw funds from FTX due to the country’s strong crypto regulations. Last November, FTX Japan shared its proof of reserves, showing a huge XRP holding in its cold wallet.
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