“$181 Million in Assets Unaccounted for After FTX US Bankruptcy Filing, Sam Bankman-Fried to Stand Trial in October”

1: ftx us, a cryptocurrency exchange, has identified $181 million worth of assets, however half of them have been subject to unauthorized third-party transfers since the company’s bankruptcy filing. reports of unauthorized transfers from the main exchange, ftx.com, surfaced soon after the bankruptcy filing and amounted to hundreds of millions of dollars. sam bankman-fried, founder of ftx and alameda research, was arrested and charged with eight financial crimes and is scheduled to stand trial in new york in october 2021.

2: the reports of unauthorized transfers from ftx.com caused customers to rush to withdraw their funds, leading ftx to shut down its exchange, entertain a takeover bid, and ultimately file for bankruptcy. john ray, the newly appointed ftx ceo, described the effort to uncover this information as “herculean” in a statement about the meeting. the restructuring team of ftx us stated that the assets identified on the petition date were significantly lower than the aggregate third-party customer balances suggested by the election ledger. lead attorney adam landis shared information about ftx’s liquid assets during a court hearing last wednesday.

3: sam bankman-fried entered a plea of not guilty to all charges and is currently under house arrest at his parents’ home in palo alto, california, awaiting his trial. ftx has identified $5.5 billion worth of liquid assets, including $1.7 billion in cash, $3.5 billion in cryptocurrencies, and another $300 million worth of liquid securities. of the remaining ftx us assets, $90 million were moved from ftx us via “unauthorized third-party transfers” and $88 million have been moved to a cold storage wallet, with another $3 million pending transfer. $1.6 billion worth of alameda’s funds were in a “hot” crypto wallet, meaning that they were accessible online. ftx’s trial is scheduled to begin in october.


By Evey Lovelace

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