FTX Reboots After Bankruptcy, Still $415M Short from Hackers
• FTX CEO John J. Ray III is attempting to reboot the crypto exchange after it filed for bankruptcy.
• The exchange has recovered assets worth approximately $5 billion, including over $700 million in Solana (SOL).
• There is still a hole of over $415 million caused by FTX hackers hours before filing for bankruptcy.
FTX, a cryptocurrency exchange that filed for bankruptcy in January 2023, is attempting to reboot under new CEO John J. Ray III. Ray has formed a task force to explore the matter and believes the company could gain more value by rebooting than liquidating all the assets. The exchange has recovered assets worth approximately $5 billion, including over $700 million in Solana (SOL). However, Ray is convinced several FTX wallets are missing and may never be recovered, complicating the process of reimbursing customers‘ and creditors‘ capitals.
The collapse of FTX has had a ripple effect on other crypto firms, such as BlockFi, Gemini’s Earn Program, and DCG’s Genesis Trading, which just filed for bankruptcy under chapter 11. Furthermore, FTX customers and creditors are facing nasty allegations, with SBF claiming that FTX US was solvent even before filing for bankruptcy. SBF noted in a recent post that FTX US had at least $111 million, and likely around $400 million, of excess cash on top of what was required to match customer balances.
Unfortunately, there is still a hole of over $415 million caused by FTX hackers hours before filing for bankruptcy. SBF has provided his side of the story regarding FTX assets claiming Sullivan & Cromwell (S&C) gave some misleading information. With the reputation of FTX already damaged on the international stage, creditors may not have the time to wait for the exchange to reboot, making the process of restoring customer faith and recovering lost funds an uphill battle.