FTX Uncovers Vast Supply of Recovered Assets: Will It Prove Sufficient to Compensate Customers?

FTX Crypto Exchange Reveals $7 Billion in Recovered Assets

In a recent court filing, the defunct crypto exchange FTX has disclosed the total assets it has recovered since the start of its bankruptcy proceedings. The question now arises whether these assets will be sufficient to repay the company’s customers.

FTX Recovers $7 Billion In Total Assets

According to the court filing dated September 11, FTX has successfully retrieved $7 billion in total assets so far. This includes $0.8 billion in government-recovered assets, $500 million in brokerage assets, $2.6 billion in cash recovered before and after the bankruptcy petition, and $3.4 billion in crypto assets.

Solana’s SOL is the largest crypto holding for FTX, with over $1.16 billion in SOL held. Other top holdings include BTC ($560 million), ETH ($192 million), APT ($137 million), USDT ($120 million), XRP ($119 million), BIT ($49 million), STG ($46 million), WBTC ($41 million), and WETH ($37 million).

These crypto assets are categorized as “Digital asset A holdings,” while other tokens held by the company are classified as “Category B tokens” due to their failure to meet liquidity thresholds.

In addition to the crypto assets, FTX also holds $506 million from its token investments. However, these investments are subject to a vesting schedule, making them not readily accessible to the company. The largest token investment for FTX is SOL, with $137 million worth of vested tokens.

The company also has $529 million invested in brokerage assets, including investments in Grayscale’s Bitcoin Trust and Ethereum Trust, Bitwise, and BlackRock’s funds.

FTX’s former CEO, Sam Bankman-Fried (SBF), has made several investments in other companies prior to his involvement with the crypto exchange. FTX’s venture portfolio includes 438 investments, with equity stakes in NFT projects such as Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC).

Will These Assets Be Sufficient To Repay Customers?

FTX currently faces 36,075 customer claims amounting to $16 billion. However, the company has only scheduled $10.9 billion of customer claims to date.

Of the scheduled claims, 72% are awaiting agreement or dispute, 10% have agreed, and 18% have disputed the scheduled claim amount, potentially claiming a higher owed amount from the company.

The customers who fall under the 72% category have until September 29 to file a proof of claim if they wish to dispute it. FTX plans to return its proposal to the Joint Provisional Liquidators (JPL) on the same day.

Before these assets can be used for customer repayments, the court must approve the company’s recovery plan. Furthermore, the assets will need to be liquidated in accordance with the directives of the bankruptcy court.