FTX, the Bahamian-headquartered cryptocurrency exchange which suffered an implosion last year is mulling the idea of a comeback after successfully recovering up to $7.3 billion in liquid assets.
These recovered assets mark an increase of above $800 million since the beginning of 2023. At the same time, questions have been asked concerning who will fund the reopening plus other responsibilities.
Legal representatives of FTX from Sullivan & Cromwell told the United States Bankruptcy Court for the District of Delaware about the asset recovery during the April 12th court hearing. In addition, they mentioned that FTX would likely restart its operations in the second quarter of 2024 with a reboot starting as early as April.
FTX CEO Push for Recovery of Assets
Since John Ray III took over as the new Chief Executive Officer (CEO) of the exchange after Sam Bankman-Fried resigned, he has been trying to recover funds from several entities. He focused on retrieving Bankman-Fried’s contributions to political groups and charitable organizations. It was discovered that most of these funds were already spent while others have passed through channels that would be difficult to recoup.
However, a notification was sent to all concerned entities and beneficiaries asking them to return whatever they might have received from FTX through SBF, the former CEO with accruing interest.
Reportedly, the young billionaire contributed as much as $40 million to political committees in the United States, especially those aligned with the Democrats. The Republican party was not left out of his benevolent act as they had received donations from SBF through non-profit organizations.
Over two weeks ago, Bahamas-based independent asset manager Modulo Capital was approached by FTX management to return the funds invested in its startup. According to TheCoinRise, Modulo Capital received up to $460 million from FTX’s sister trading firm Alameda Research but it was only discovered in the company’s spreadsheet after FTX imploded.
Also, Ray III recently released a 45-page document that detailed the factors that contributed to troubles in FTX. Inadequate financial and accounting controls, group management structure, and record-keeping processes were listed as some factors that contributed to the fall of the cryptocurrency exchange in November 2022.