A lawyer for the defunct cryptocurrency exchange FTX believes that more than $5 billion (£4.1 billion) in assets have been located.
Wednesday, a US bankruptcy court was informed that the degree of consumer damages is yet unknown.
Former FTX CEO Sam Bankman-Fried is charged by prosecutors with perpetrating an “epic” fraud that may have cost investors, customers, and lenders billions of dollars.
Mr. Bankman-Fried has pled not guilty to investment fraud accusations.
Andy Dietderich, a counsel for FTX, informed US Bankruptcy Judge John Dorsey in Delaware, “We have identified almost $5 billion in cash, liquid cryptocurrencies, and liquid investment assets.
Collapsed crypto behemoth recovers $5bn
Mr. Dietderich stated that the recovered money does not include assets confiscated by the Securities Commission of the Bahamas. Where FTX was headquartered and Mr. Bankman-Fried was arrested.
The majority of FTX’s clients and investors who are in jeopardy have not been identified in the proceedings.
However, court documents include American football player Tom Brady, his ex-wife Gisele Bündchen, and New England Patriots owner Robert Kraft.
The 30-year-old was caught in the Bahamas in December and extradited to the United States. He is accused of committing “one of the largest financial frauds in the history of the United States.”
On 11 November, FTX, which was valued at $32 billion a year ago, filed for bankruptcy protection. It is estimated that $8 billion in client cash were gone.
Mr. Bankman-Fried is accused by US federal authorities of misappropriating FTX customers’ assets to settle debts at his cryptocurrency trading firm Alameda Research and make other transactions.
In December, eight criminal charges, including wire fraud, money laundering, and campaign finance offenses, were announced by prosecutors. Additionally, financial regulators have filed claims against Mr. Bankman-Fried.
Gary Wang, the co-founder of FTX, and Caroline Ellison, the former CEO of Alameda, have also been accused of their alleged roles in the collapse of the company. Authorities stated that both parties were assisting with the inquiry.
Late in December, Mr. Bankman-Fried was freed on a $250 million bond with the condition that he not leave his parents’ California home.
Before his arrest, he told: “I did not intentionally commit fraud. I do not believe I have committed fraud. I was by no means nearly as competent as I believed I was.”
