- The FTX management said that the company has $720 million in cash asset and are working to bring back customers’ funds.
- On Tuesday, SBF signed the papers of his agreement to the U.S. extradition which shall likely happen today.
On Tuesday, December 20, the FTX creditors were told that the deceased cryptocurrency exchange has more than $1 billion in assets identified. The company’s new management appraised the company’s position during a procedural hearing on Tuesday.
In a word to the creditors, the management stated that FTX employees have been working to bring back hundreds of millions of dollars in cash from several bank accounts in their effort to resolve the issue with the collapsed crypto exchange.
During the hearing, the FTX management said that the company has $720 million in cash assets. The exchange has yet to consolidate this as most funds are currently under the control of the U.S. Department of Justice (DoJ). There’s an additional $500 million currently held in U.S. institutions. During the bankruptcy proceedings on Tuesday, FTX’s new chief financial officer, Mary Cilia, said:
We are reaching out to all of those banks and changing the signatories on the accounts so that we can get access to the accounts and move the cash as much as we can to authorized depository institutions.
Cilia further added that the company has around $130 million of cash locked up in Japan, wherein local regulators have held funds for local customers. A $6 million stay separate for operational expenses like payroll. The rest of the $423 million is at unauthorized U.S. institutions at a single broker, said Cilia, without naming the broker.
Steve Coverick, a senior director at FTX’s financial advisors Alvarez & Marsal also stated that the exchange is making “ongoing efforts” to identify the company’s global digital assets and move them to a cold wallet.
SBF Agrees to U.S. Extradition
Sam Bankman-Fried, the disgraced founder of crypto exchange FTX and agreed to U.S. extradition and signed the necessary paperwork for the same on Tuesday. As per the New York Post, the extradition has been confirmed by Bahamas Acting Commissioner of Corrections Doan Cleare. On Tuesday, SBF surrendered the documents to challenge the U.S. extradition.
Subscribe to our daily newsletter!
No spam, no lies, only insights. You can unsubscribe at any time.
Later today Wednesday, SBF will supposedly appear before the court and will fly to the U.S. on the same day. However, the FTX founder will sign a set of separate papers finalizing his waiver of rights. Citing sources familiar with the matter, Bloomberg reported that FBI agents will accompany Sam Bankman-Fried on a non-commercial aircraft back to the US. The plane shall leave from a private airport of the island nation, said another source.
Ever since his arrest earlier this month, SBF has been living in the notorious Fox Hill jail in The Bahamas. The collapse of FTX has left major scars on the entire crypto space. In a recent development, questions have been raised over the financial health of Binance.
