The bankruptcy estate of former crypto exchange FTX is reportedly selling billions of dollars worth of crypto assets and raising cash to pay out customers it owes money to.
According to a new one report by Bloomberg FTX has started selling digital assets as a means to pay back customers whose accounts were frozen during the now-defunct exchange’s high-profile demise in late 2022.
The report shows that the four largest FTX affiliates, including Alameda Research, were able to increase the estate’s cash reserves to about $4.4 billion by the end of 2023, up from about $2.3 billion at the end of October. The report also notes that FTX’s total cash supply will likely be even higher once the rest of the company’s affiliates are included.
Since the multi-billion dollar collapse, advisors to the crypto exchange have been tracking down assets, closing deals with smaller clients and suing former employees of Sam Bankman-Fried — the company’s disgraced founder — and taking other crypto companies to court. allegedly withdrawing funds before FTX could file for bankruptcy, the report said.
Last week, FTX’s trading arm Alameda Research dropped a lawsuit against Grayscale alleging the crypto asset manager took in $1.3 billion in excessive management fees.
Despite efforts to refund customers, FTX does not expect them to be fully refunded and FTX.com users will bear the brunt of the losses.
Additionally, customers are challenging the company’s proposal that would peg the value of their digital assets to what it was at the time FTX collapsed, potentially missing out on 2023 profits.
FTX customer claims are currently worth $0.73 per dollar, according to investment firm and bankruptcy claims broker Cherokee Acquisition, up from $0.38 per dollar in October.
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Featured image: Shutterstock/Tithi Luadthong
