The FTX debacle has been a huge problem for the industry and the collateral damage from the exchange’s implosion has meant that many projects are now suffering.
However, those who are suffering the most from the damage inflicted by Sam Bankman-Fried’s negligence and illegal activity are those who had funds deposited to the platform. The FTX legal team are working to try and recover as many of these assets as possible, and have managed to identify some funds that they believe could be used as a part of the process.
FTX identifies $5.5 billion of digital assets for recovery
The FTX recovery team has been working hard to try and find assets that can be recovered in order to reimburse their creditors, and thus far they have successfully managed to identify $5.5 billion of digital assets that could be recovered in order to make them whole.
This is still a huge shortfall, and it appears that there won’t be a chance for customers to be made completely whole, but it is still likely that many of their creditors will be able to see some pennies in the long run.
This $5.5 billion includes $415m of hacked crypto
Shortly after the FTX meltdown, the exchange suffered a hack in which hundreds of millions of dollars of assets were quickly removed from the exchange and sent into other wallets.
It is currently not known for certain exactly who controls these assets, but investigators believe that these funds ought to be lawfully returned to the FTX creditors.
As such, these asset could potentially be retrieved if the people controlling the wallets can be tracked down, which would be a significant boost for the FTX creditors.
However, it remains to be seen how successful attempts to retrieve these assets will be.
FTX advisors are reviewing a $2.1 billion agreement with Binance in 2021
Advisors in the FTX legal proceedings are also investing a $2.1 billion agreement that was made with Binance in 2021, to see if any of these assets can be clawed back from Binance.
There are varying views on this, especially considering that the majority of analysts don’t believe that Binance did anything to break the law in the terms of the deal.
However, if the funds that Binance was able to gain from this deal are deemed to have had illicit roots, then it is possible that they could be retrieved and used to reimburse creditors.
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