By George Ward
After appointing their restructuring advisors, including Alvarez & Marsal, to improve performance and restructure their system, the collapsed digital asset giant FTX discovered that it still owns over $1 billion in assets.
Sam Bankman Fried was reported to have donated millions of dollars to charitable organizations and political campaigns across the country. Therefore, the reconstruction team requested that these donations be returned to the bankrupt crypto firm.
The new management of FTX remains determined to recover its cash assets distributed in various banks in the United States. Millions of dollars belonging to FTX have been discovered in various bank accounts across the country.
An FTX spokesperson revealed earlier this week that the firm plans to recoup lost funds to solve its financial crisis, even if it is a partial solution.
The newly appointed CFO, Mary Cilia, disclosed that the company has over $100 million in Japanese banks. The company claims this cash was withheld with the assurance that FTX users resident in Japan can receive payment. FTX also has over $5 million in reserve for operational costs.
What Happened To FTX?
The problem began around mid-November when one of the world’s most reputable Crypto exchanges -FTX, crashed. FTX has recorded a peak worth of over $30 billion in previous months.
According to reports, Bankman Fried misappropriated over $4 billion in user funds. However, he claimed to have used this fund to mitigate the effect of losses at Alameda.
FTX customers worldwide saw it as a betrayal of trust, alleging that Bankman-Fried used investors’ funds to replace his loss. This act is one of the reasons he is currently under investigation.
The restructuring team noted that the FTX founder donated over $41 million as support for the political ambitions of US Democrats. The team added that the money he donated was for investors.
Hence, it has demanded a return of the money. The team has stated that if the donated funds are not voluntarily returned to the bankrupt crypto firm, the team will enforce the return through legal means.
Meanwhile, the former FTX CEO has agreed to be extradited to the United States for more detailed investigations.