FTX Reports $415 Million in Crypto Hacks Amid Bankruptcy Recovery Efforts
FTX's Cryptocurrency Losses
Bankrupt crypto exchange FTX has reported significant losses due to hacks, with approximately $415 million in cryptocurrency stolen. This includes $323 million from its international exchange and $90 million from its U.S. exchange since declaring bankruptcy.
Recovery and Remaining Shortfalls
FTX has managed to recover over $5 billion in crypto, cash, and liquid securities. Despite these efforts, there remain significant shortfalls at both its international and U.S. exchanges. The recovery includes $1.7 billion in cash, $3.5 billion in liquid cryptocurrency, and $300 million in liquid securities.
Dispute with Sam Bankman-Fried
Sam Bankman-Fried, the indicted founder accused of misappropriating funds, has contested FTX's financial disclosures. He claims the company possesses sufficient funds to repay U.S. customers, estimating their debts between $181 million and $497 million. Bankman-Fried has not accessed FTX records since resigning as CEO in November.
Legal Proceedings and Disputes
FTX has not disclosed the total amount owed to its customers and has not responded to Bankman-Fried's challenges. The company's legal team has resisted his involvement in bankruptcy proceedings, and Bankman-Fried faces fraud charges with a trial set for October.
Bahamas Asset Dispute Resolution
An investigation revealed an asset seizure by the Securities Commission of the Bahamas, leading to a conflict between FTX's bankruptcy team and Bahamian regulators. This was resolved in January, with the Bahamian government holding $426 million for creditors. Bahamian Prime Minister Philip Davis acknowledged the seizure as beneficial for FTX investors.
Ongoing Recovery Efforts
FTX continues its recovery endeavors, having retrieved significant assets, including $685 million in Solana, $529 million in FTX's FTT token, and $268 million in Bitcoin. These efforts are part of a comprehensive investigation to maximize recoveries for creditors.
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