FTX Has $1 Billion in Cash
FTX executives are busy these days, collecting money all around the globe.
FTX executives are busy these days. They are trying to win back the investor’s trust and retrieve hundreds of millions of dollars in cash from hundreds of bank accounts.
Following the mess left by the FTX founder Sam Bankman-Fried, who resigned on Nov. 11, the executives said that they found more than $1 billion in assets, including $720 million in cash assets. Scattered worldwide, they must now be consolidated.
Another $500 million is already being held in U.S. institutions.
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,FTX’s new chief financial officer, Mary Cilia said during the latest bankruptcy proceedings.
Some of the cash – around $130 million – is held in Japan, according to Cilia, adding that the company has another $6 million for operational expenses such as payroll.
Most of the remaining $423 million at unauthorized U.S. institutions are mainly at an unnamed single broker. Meanwhile, $485 million are already in an authorized deposit institution.
A senior director at FTX’s financial advisors Alvarez & Marsal also added that they are also trying to identify the company’s international crypto assets and wire them to cold wallets, using custodial providers.
The Chapter 11 bankruptcy hearings aim to wind up the exchange. However, as previously reported by Gagarin News, the FTX practices under Sam Bankman-Fried were extremely poor. Accordingly, the company’s new management had to review customer terms and conditions that were stored in a variety of places such as Google Drive and Slack in order to consolidate the necessary info.
In April, the company is slated to file a statement of assets or of its financial position required under U.S. bankruptcy law, identify the number of employees, and how much money was withdrawn before the bankruptcy took place.
Sam Bankman-Fried has been released on bail.