FTX locates billions of dollars of assets

Collapsed crypto platform FTX has located more than $5 billion of assets. FILE PHOTO: Dado Ruvic/Reuters

Collapsed crypto platform FTX has located more than $5 billion of assets. FILE PHOTO: Dado Ruvic/Reuters

Published Jan 13, 2023

Share

An attorney for the collapsed cryptocurrency exchange FTX has confirmed that assets worth $5 billion have been found, although a court in the US has been told that the extent of losses to customers remains unknown.

Andy Dietderich, the attorney for FTX, told a judge in Delaware: "We have located over $5 billion of cash, liquid cryptocurrency and liquid investment securities."

Sam Bankman-Fried, the former chief executive of FTX, has been accused of organising a fraud that has cost investors and other parties billions of dollars.

However, Bankman-Fried has denied that he has ever cheated investors in the company.

Meanwhile, US regulators recently warned banks about the dangers associated with the cryptocurrency market.

Financial institutions were told by watchdogs to be particularly mindful of fraud and misleading disclosures, among other issues linked to the crypto industry.

A joint statement from the US Federal Reserve, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency read: "The events of the past year have been marked by significant volatility and the exposure of vulnerabilities in the crypto-asset sector."

Banks have also been encouraged to do what they can to stop the issues from spreading across the financial system.

The statement added: "It is important that risks related to the crypto-asset sector that cannot be mitigated or controlled do not migrate to the banking system."

Related Topics:

Techcryptocurrency