Sam Bankman-Fried’s attorneys are revealing that billions of {dollars} value of liquid property has been recovered from bankrupt crypto alternate FTX.
In accordance with a brand new report by CNBC, attorneys representing the disgraced former CEO have advised a choose that $5 billion in money, digital property, and different securities have been recovered from FTX.
Legal professional Adam Landis advised the courtroom that the $5 billion value of recovered property don’t embody any illiquid digital currencies, including that FTX’s holdings are so giant that promoting them would drive down the costs of crypto property.
The report says that one of many causes FTX disintegrated was as a result of Bankman-Fried and then-CEO of Alameda Analysis Caroline Ellison would borrow towards the worth of FTT, the native asset of FTX, whereas controlling most of its provide in circulation, making a state of affairs the place they wouldn’t be capable to liquidate their place at full ebook worth.
FTX’s new chief govt, John R. Jay of Enron fame, who took the helm from Bankman-Fried late final yr, beforehand mentioned that not less than $8 billion value of consumer property have been unaccounted for in one of many worst circumstances of company management he’s ever witnessed, in keeping with the report.
FTX disintegrated in November 2022 after its native asset collapsed and it was compelled to halt buyer withdrawals. Bankman-Fried is accused of defrauding buyers and mishandling consumer funds and is dealing with over 100 years in jail if convicted.
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