FTX Exchange Recovers $7B in Liquid Assets from Bankruptcy

• FTX, a bankrupt crypto exchange, has recovered $7 billion in liquid assets and expects to recover even more.
• The exchange misappropriated customer deposits, using them to fund political donations and luxury real estate for top executives.
• An ongoing forensic analysis is being conducted to identify commingled customer deposits and additional recoveries are expected.

FTX Crypto Exchange Recovers $7 Billion

FTX, a global crypto trading platform, has so far recovered $7 billion in liquid assets from its bankruptcy filing. This number is expected to increase as the Debtors continue their investigation into the mismanagement of FTX Group’s funds. The total deficit owed to customers was estimated at approximately $8.7 billion as of the petition date.

Commingling of Customer Deposits

The majority of the deficit—over $6.4 billion—was in the form of fiat currency and stablecoin that had been misappropriated by FTX Group’s executives. A forensic analysis has identified certain transactions funded with commingled customer deposits including political and ‘charitable’ donations, venture investments and acquisitions, as well as luxurious real estate purchases for senior staff members in the Bahamas.

Political Donations

According to the report, FTX’s founder Sam Bankman-Fried along with other top executives donated over $100 million dollars to politicians and political causes out of customer deposits. It is unclear whether these funds will be able to be recovered or if they have already been spent on campaigns or lobbying efforts from elected officials or organizations.

Luxury Real Estate Purchases

In addition to large political donations made out of customer deposits, it appears that senior staff members at FTX purchased luxury properties in the Bahamas worth over $243 million using commingled funds as well. Again, it remains unknown whether these assets can be recovered by FTX’s debtors or if they have already been sold off for cash or used by those who purchased them.

Ongoing Investigation & Recovery Efforts

The Debtors are continuing their investigation into all transactions made using customer deposits while making efforts to identify, secure and recover any assets still available for recovery. Updates will be provided on their progress as more information becomes available about potential recoveries from these mismanaged funds