• FTX is a bankrupt cryptocurrency exchange that has managed to recover most of it’s assets.
• The recovery was partly due to the appreciation of crypto asset prices in recent months.
• At Wednesday’s bankruptcy hearing, FTX had $7.3 billion in distributable assets including cash and crypto.
FTX’s Recovery
FTX is a bankrupt cryptocurrency exchange that has managed to recover most of its assets owed to customers and may be poised for a revival next year. The recovery was partly aided by an appreciation in crypto asset prices over the last few months, helping strengthen FTX’s balance sheet. During a bankruptcy hearing on Wednesday, lawyers with Sullivan and Cromwell representing FTX said the exchange now possesses $7.3 billion in distributable assets including cash and crypto.
Appreciation of Crypto Asset Prices
Crypto asset prices have been increasing dramatically since November 2022 when FTX went bust, giving it hope for a revival next year. Prices have been so successful that FTX attorney Andy Dietderich noted “we will be increasing distributable assets – hopefully dramatically – as the case progresses“. In January, FTX’s lawyers reported $5.5 billion liquid assets which included $1.7 billion in cash, $0.3 billion of securities, and $3.5 in crypto-based on prices at the time when Bitcoin price stood narrowly above $21,000 on the day of release .
Distributable Assets
At Wednesday’s bankruptcy hearing, lawyers representing FTX said that the exchange now possesses $7.3 billion in distributable assets including cash and crypto for customers who had held funds at the time of closure . This figure includes both those identified by attorneys back in January as well as any new ones acquired during this period . As such , this suggests an increase from previously reported figures .
Expected Price Fluctuations
While there is potential for further growth with regards to value , attorney Andy Dietderich warned against expecting too much while noting that “crypto asset prices will be expected to rise and fall during the case” . He emphasized not losing sight of what has already been achieved so far despite possible fluctuations down the line .
Conclusion
The prospects for FTX are looking more hopeful following its recovery process which has seen impressive gains over recent months upon identifying liquid assets valued at around $7.3 billion . However , care should be taken not to expect too much considering fluctuations can still occur throughout this period .