25.2 C
Accra
Friday, August 30, 2024
WorldFTX: Defunct crypto giant recovers over $5bn of assets

Date:

FTX: Defunct crypto giant recovers over $5bn of assets

A cryptocurrency exchange has gone bankrupt. According to an attorney for the firm, FTX has located assets worth more than $5 billion (£4.1 billion).


However, a US bankruptcy court was informed on Wednesday that the extent of customer losses is still unknown.

Prosecutors have charged FTX’s former CEO Sam Bankman-Fried with masterminding a “epic” fraud that could have cost investors, customers, and lenders billions of dollars.

Mr Bankman-Fried has pleaded not guilty to charges of defrauding investors.

“We have located over 5 billion dollars of cash, liquid cryptocurrency, and liquid investment securities,” Andy Dietderich, an attorney for FTX, told US Bankruptcy Judge John Dorsey in Delaware.

Mr Dietderich said that the recovered funds do not include assets seized by the Securities Commission of the Bahamas, where FTX was based and where Mr Bankman-Fried was living at the time of his arrest.

Most of FTX’s customers and investors who are facing losses have not been named in the hearings.

However, American football star Tom Brady, his former wife Giselle Bündchen and New England Patriots owner Robert Kraft were mentioned in court filings.

In December the 30-year-old was arrested in the Bahamas and extradited to the US. He has been accused of committing “one of the biggest financial frauds in US history.”

FTX, which a year ago was valued at $32 billion, filed for bankruptcy protection on November 11. It has been estimated that $8 billion of customer funds were missing.

US federal prosecutors have accused Mr. Bankman-Fried of misappropriating FTX customers’ funds to pay debts at his cryptocurrency trading firm Alameda Research and to make other investments.

In December prosecutors announced eight criminal charges, including wire fraud, money laundering and campaign finance violations. Financial regulators have also brought claims against Mr Bankman-Fried.

FTX co-founder Gary Wang and Caroline Ellison, the former head of Alameda, have also been charged over their alleged roles in the company’s collapse. Authorities said they were both cooperating with the investigation.

In late December, Mr Bankman-Fried was released from detention on a $250 million bail on the condition that he not leave his parents’ home in California.

In an interview with BBC News before his arrest, he said: “I didn’t knowingly commit fraud.” I don’t think I committed fraud. I didn’t want any of this to happen. I was certainly not nearly as competent as I thought I was.”

Source: BBC.com
Will you vote in the 2024 general election?

Latest stories

Minority accuses govt of using military to scare voters amid grain export ban

The Minority in Parliament has criticized the government for...

Newmont pays GHS3.176bn tax to Ghana for quarter one of 2024

Newmont Corporation, the world’s top gold producer and Ghana’s...

Tano North schools receive 2,000 desks from NPP PC, Gideon Boako

The New Patriotic Party (NPP) Parliamentary Candidate for the...

You are mad if you agree that GHS16 to $1 is better than GHS4 to $1 – Felix Kwakye

Parliamentary candidate for Abura Asebu Kwamankese, Felix Kwakye Ofosu,...

Naana Jane steps down as Chancellor of Women’s University in Africa to focus on 2024 polls

Professor Naana Jane Opoku-Agyemang, the running mate for the...

Related stories

Israel consents to halts in conflict to facilitate polio vaccination campaign in Gaza

Israel has agreed to implement a series of "humanitarian...

Denmark set to shut its embassies in Mali and Burkina Faso

Denmark announced on Monday that it will be closing...

Australian workers can now choose to ignore work-related emails, calls outside of office hours

Australian workers now have legal protection against work-related intrusions...

Public outcry in Kenya over cereal taxes

Kenya's recent decision to impose new tariffs on the...

South Africa mourns ‘favourite teacher’ as he dies 85

South Africa is mourning the loss of William Smith,...

Senegal launches its very first satellite, Gaindesat

Senegal has made a groundbreaking step into space exploration...

Nigerians angry after Tinubu gets a new plane

Nigerians have expressed widespread outrage after President Bola Tinubu...