Crippled exchange FTX has reportedly recovered $5 billion from liquidation processes after the exchange filed for Chapter 11 Bankruptcy. The exchange reportedly had a net liability of more than $8 billion.
Is FTX liquidation heading somewhere?
FTX attorney Andy Dietderich has announced that the derailed exchange has recovered $5B in fiat and digital assets through its liquidation processes. According to reliable sources, the exchange’s net liability amount stood at $8B before the announcement.
Although FTX recovered the sum, the attorney mentioned that the new management team is working to retrieve the transaction history of depositors.
During the hearing, Dietderich also reported to the jury in Delaware that, moving forward, FTX plans to offload non-strategic investments worth a whopping $4.6B, including its subsidiaries LedgerX, Embed, and FTX units in Japan and Europe. The liquidation processes on the subsidiaries will move swiftly, bearing in mind that the firms had separate accounts from those of the disgraced exchange.
A U.S. trustee objected to FTX’s move to sell its subsidiaries by Andrew Vara. Andrew argued that the subsidiaries would have hidden answers to how funds got lost in FTX. His investigation policy requested the jury to suspend the liquidation of subsidiaries until a satisfactory answer on how FTX lost customer funds is met.
FTX Japan has commenced strategic plans to refund depositors as part of the bankruptcy procedures. Moreover, a significant 2021-2028 sponsorship business alliance between FTX and the renowned multiplayer adventure game League of Legends is presumed to end promptly.
Endorsed FTX Celebrities under legal pressure
Since his extradition to the US, Sam Bankman Fried has pleaded ‘not guilty’ to fraud charges laid upfront by U.S. prosecutors. His accomplices, Gary Wang and Caroline Ellison pleaded guilty to the fraud and conspiracy charges. They agreed to help investigators uncover the unraveling truth of how funds were used in the firm.
Moreover, FTX’s demise has exposed several celebrities whose pockets may take a hit. Court documents have revealed that NFT quarterback Tom Brady and his ex-wife Gisele Bundchen allegedly owned more than 1.7 million common FTX shares, which according to financial experts, are currently worthless.
Other celebrities such as retired NBA player Shaquille O’Neil, professional tennis player Naomi Osaka, and NBA star Stephen Curry are currently caught up in a frenzy as states like Texas open legal investigations on their association with FTX.