FTX, the bankrupt crypto exchange, has recovered over $7.3 billion in cash and liquid crypto assets, says the company attorney Andy Dietderich at a US bankruptcy court hearing in Delaware.
Rise in Crypto Price Helping FTX
After FTX’s collapse under previous CEO and founder Sam Bankman-Fried, the new leadership led by chief executive John J. Ray III is trying to figure out ways to recover customers’ and investors’ money after months of resource collection.
According to Dietderich, the company has gathered another $2.4 billion after reporting that it had roughly $5 billion cash in January.
FTX filed for bankruptcy in November 2022, after traders pulled $6 billion from the platform and rival Binance abandoned the rescue deal. Based on the prices of November 2022, the company’s total recovery would be valued at $6.2 billion. This recovery is a result of the recent crypto price rise, says Dietderich.
Additionally, the company is also exploring new options to restart the company, as it negotiates with stakeholders. The decision on the restart will be made this quarter, says Dietderich.
However, Dietderich didn’t offer a lot of details about the potential restart. During the bankruptcy case, many FTX customer deposits were locked. So far only those in Japan have been able to withdraw their funds. This was a result of the strict crypto regulations of the country, added Dietderich.
The Path out of Bankruptcy
The company plans to execute a preliminary Chapter 11 plan that would help the company get out of bankruptcy, says Dietderich. The company intends to file the said plan by July.
As creditors fight for their share of assets in the company, FTX understands the need for working out more details for better execution of the plan. Additionally, the company does not expect to get its plan approved before the second quarter of 2024.