FTX advisers uncover crypto worth $5b

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Blockchain
FTX advisers uncover crypto worth $5b

According to a Bloomberg report, FTX advisers uncovered approximately $ 5 billion in cash or cryptocurrency assets to repay creditors.

Attorney Andrew Dietderich told Delaware bankruptcy court John Dorsey the business was liquidating the assets, which include $4.6 billion in “nonstrategic investments.”

The Securities Commission of the Bahamas already has $425 million in bitcoin from the company’s collapse last year. FTX lost $8 billion in November and owed its 50 largest unsecured creditors $3.1 billion.

Customer names are to be kept private

Dietderich told the panel that clients were due payment, but the quantity was unknown. The court allowed new FTX CEO John Ray III, who succeeded Sam Bankman-Fried, to keep the names of its nine million customers private according to the report.

Dietderich testified that the business found 120 billion transactions on the defunct crypto giant’s platforms. The judge began Wednesday’s hearing by reading a letter from four US senators requesting him to appoint an independent examiner.

They argued FTX attorneys may have conflicts that would make an impartial inquiry impossible. Dorsey denied the letter’s impact. “It’s improper ex parte communication,” he said. “It won’t affect my choices.”

It happened only days after the DOJ, in defiance of disgraced FTX founder Sam Bankman-request Fried’s to acquire the shares to pay his legal expenses, took $464 million worth of Robinhood stock from him.

Federal prosecutors acknowledged in a court filing that they had obtained criminal and civil forfeiture orders to seize 55.3 million Robinhood shares and an extra $20.7 million from ED&F Man Capital Markets.

Zixiao “Gary” Wang, another former FTX executive, owns 10% of Emergent Fidelity Technology, a business that is 90% controlled by Bankman-Fried and holds the shares.

Robinhood drawing attention

In the bankruptcy proceedings for the defunct cryptocurrency exchange FTX, the Robinhood stock had been a point of contention in court. Still, the DOJ’s seizure has put a stop to the dispute and made the shares inaccessible to all parties for the time being.

The present administration of FTX, headed by CEO Ray III, has requested a court order to freeze the shares to use the proceeds to settle the business’s debts. He risks a pricey legal struggle if the case goes to trial after last week’s not-guilty pleas to eight federal charges of fraud and conspiracy.

10% of the holding company that held the shares of Robinhood belonged to Zixiao “Gary” Wang. The motion from last week states, “Bankman-Fried needs part of this cash to pay for his criminal defense.”

Along with Bankman-own Fried’s claim in bankruptcy court, liquidators in Antigua, BlockFi, FTX, and liquidators in Antigua have all asserted claims about the Robinhood shares.

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Brenda Mary

Brenda Mary is a crypto enthusiast and a graduate of The University of Nairobi in economics. Brenda’s passion brings her back to her elementary school years as a poet. She enjoys discussing blockchain technology and is committed to producing original content. Brenda also covers other rapidly developing markets and economic and cryptocurrency studies.