FTX ‘finds’ 7 billion dollars and wants to restart platform

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Last Updated on 5 November 2023 by CryptoTips.eu

The team of lawyers representing Sam Bankman-Fried, the founder and former CEO and also the crypto platform FTX itself has some good news for all those who lost money last year when this major American crypto player collapsed. The team at law firm Sullivan & Cromwell claims they recovered some $7 billion in assets.

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A year

The news caused FTT, the platform’s cryptocoin, to jump by as much as 70% in one day.

The lawyers handling the bankruptcy say that a possible restart of the platform will take at least another year. Critics on twitter meanwhile argue that it will only take so long to allow the lawyers to bill thousands more hours (easy when you know your client still has some $7 billion in assets of course) and that they will first serve themselves before the others get repaid.

Bitcoin’s rise

Even though it is a fantastic result (when FTX collapsed in November last year, the lawyers could “only” find $ 4 billion), the result is somehow unsurprising.

After all, the largest category of “assets” found were investments in crypto (about $1.5 billion), and especially Bitcoin. As Bitcoin was trading at $15,000 when FTX collapsed, those assets have since doubled in value, making for a $1 billion profit.

An additional problem for a restart is that the lawyers estimate that about 80,000 transactions had been sent to the platform by the time the plug was pulled. What do you do with those transactions when everything is turned back on? Do you let the orders go through or do you give everyone back their original investment. A lot of questions still to answer before FTX is allowed a restart.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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