FTX logo is seen in this illustration taken, November 8, 2022. REUTERS/Dado Ruvic/Illustration
WASHINGTON: FTX is unloading cryptoassets and hoarding cash, as bankruptcy advisers look for a way to repay customers whose accounts have been frozen since the platform collapsed in 2022.
The fraud-tainted crypto firm’s four largest affiliates – including FTX Trading Ltd and Alameda Research LLC – together nearly doubled the group’s cash pile to US$4.4bil at the end of 2023 from about US$2.3bil in late October, according to Chapter 11 monthly operating reports.
The company’s total cash is likely higher including the rest of its affiliates. A representative for FTX declined to comment.
The company said in a court filing last month that FTX raised US$1.8bil through Dec 8 by selling off some of the firm’s digital assets.
FTX also said it’s conducting bitcoin derivative trades to hedge exposure to the coin and generate additional yield on its digital holdings – and is exploring options to potentially restart the exchange. An uptick in FTX’s cash stockpile has coincided with the rising value of customer accounts.
Since FTX unravelled in November 2022, bankruptcy advisers have been tracking down assets and struck deals intended to benefit customers who had smaller accounts on the platform.
The company has also brought major lawsuits against former associates of Sam Bankman-Fried and crypto firms like Bybit Fintech Ltd. — Bloomberg
