June 7, 2023
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FTX reports $415M in hacked crypto, Bankman-Fried says FTX US is solvent

Bankrupt crypto trade FTX mentioned in a report back to collectors on Tuesday that about $415 million in cryptocurrency had been stolen in hacks. 

FTX has mentioned it had recovered over $5 billion in crypto, money, and liquid securities, however that important shortfalls remained at each its worldwide and US crypto exchanges. FTX attributed a few of the shortfall to hacks, saying that $323 million in crypto had been hacked from FTX’s worldwide trade and $90 million had been hacked from its US trade because it filed for chapter on Nov. 11. 

Indicted founder Sam Bankman-Fried later challenged facets of the corporate’s report in a weblog publish. 

Mr. Bankman-Fried, who has been accused of stealing billions of {dollars} from FTX clients to pay money owed incurred by his crypto-focused hedge fund, Alameda Analysis, pushed again towards FTX’s calculations late Tuesday, saying that the corporate’s attorneys at Sullivan & Cromwell had offered an “extremely misleading” image of the corporate’s funds. 

Mr. Bankman-Fried mentioned FTX has greater than sufficient cash to repay US clients, whom he says are owed between $181 million and $497 million based mostly on his “best guess.” Mr. Bankman-Fried has not had entry to FTX data since stepping down as CEO in November. 

A spokesperson for Sullivan and Cromwell declined to remark. Attorneys on the agency mentioned in a current courtroom submitting that they’ve rebuffed Mr. Bankman-Fried’s efforts to remain concerned in the corporate’s chapter proceedings. 

Mr. Bankman-Fried has pleaded not responsible to fraud costs, and he is scheduled to face trial in October. 

FTX didn’t present an estimate of the quantity owed to FTX’s US or worldwide clients, and it didn’t instantly reply to questions on Mr. Bankman-Fried’s weblog publish. 

FTX supplied some further particulars about its restoration efforts on Tuesday, saying it had recovered $1.7 billion in money, $3.5 billion in liquid cryptocurrency and $300 million in liquid securities. 

“We are making progress in our efforts to maximize recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information,” CEO John Ray mentioned in a press release. 

The crypto belongings recovered to this point embody $685 million in Solana, $529 million in FTX’s proprietary FTT token, and $268 million in bitcoin, based mostly on crypto costs on Nov. 11, 2022. Solana, which was lauded by Mr. Bankman-Fried, misplaced most of its worth in 2022. 

Throughout FTX’s preliminary investigation into hacks of its system, it uncovered a November asset seizure by the Securities Fee of the Bahamas, which led to a dispute between FTX’s US-based chapter group and Bahamian regulators. 

The 2 sides settled their variations in January, and Mr. Ray mentioned on Tuesday that the Bahamian authorities was holding $426 million for collectors. 

Bahamas Prime Minister Philip Davis referenced the dispute throughout a Tuesday occasion on the Atlantic Council in Washington, saying Mr. Ray’s group had “come around” and accepted that the Bahamian asset seizure “was appropriate and perhaps has saved the day for many of the investors in FTX.” — Reuters

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