Bankrupt crypto exchange FTX said in a report to creditors on Tuesday that about $415 million worth of cryptocurrency had been stolen in hack.
ftx said it was restored more than $5 billion in crypto, cash and liquid securities, but that significant shortcomings remained on both the international and US crypto exchanges. FTX attributed part of the shortfall to hacks and said so $323 million in crypto had been hacked from the FTX international exchange and $90 million had been hacked from the US exchange since it filed for bankruptcy on Nov. 11.
Bankman fried, who has accused of stealing billions of dollars from FTX clients to pay debt incurred by his crypto-focused hedge fund, Alameda Research, countered FTX’s calculations late Tuesday, saying the company’s lawyers at presented an “extremely misleading” picture of the company’s finances.
Bankman-Fried said FTX has more than enough cash to pay back US customers. Bankman-Fried has not had access to FTX data since he stepped down as CEO in November.
A spokesperson for Sullivan and Cromwell declined to comment. Lawyers for the company said in a recent lawsuit that they rejected Bankman-Fried’s attempts to remain involved in the company’s bankruptcy proceedings.
Bankman-Fried pleaded not guilty to fraud charges, and he is scheduled to stand trial OOctober.
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FTX did not provide an estimate of the amount owed to FTX’s U.S. or international customers, and it did not immediately respond to questions about Bankman-Fried’s blog post.
ftx provided that some extra details about his recovery efforts On Tuesday it said it had recovered $1.7 billion in cash, $3.5 billion in liquid cryptocurrency and $300 million in liquid securities.
“We are making progress in our efforts to maximize recovery, and it has taken a massive investigative effort from our team to uncover this preliminary information,” Ray said in a statement.
Crypto assets recovered so far include $685 million in Solana, $529 million in FTX’s proprietary FTT token, and $268 million in bitcoin, based on crypto prices as of November 11, 2022. Solana, which was praised by Bankman-Fried, lost most of its value in 2022.
During FTX’s initial investigation into hacks of its system, it uncovered an asset seizure in November by the Securities Commission of the Bahamas, sparking a dispute between FTX’s US-based bankruptcy team and Bahamian regulators.
The two sides settled their differences in January, and Ray said Tuesday that the Bahamian government was holding $426 million for creditors.
The Prime Minister of the Bahamas, Philip Davis, referred to the dispute at an event on Tuesday at the Atlantic Council in Washington, saying Ray’s team had “come around” and accepted that the Bahamian asset seizure was “appropriate and may have the day.” saved for many of the investors in FTX.”
Photo: (Photo illustration by Michael M. Santiago/Getty Images)