FTX says about $415 million in cryptocurrency was stolen in the hacks, including $323 million on its international exchange and $90 million on its US exchange

Bankrupt cryptocurrency exchange FTX said in a report to creditors on Tuesday that about $415 million in cryptocurrency was stolen in the hacks.

FTX said it had recovered more than $5 billion in crypto securities, cash and liquid, but significant gaps remained in its international and US crypto exchanges. FTX attributed some of that shortfall to hacks, saying $323 million in cryptocurrencies had been hacked on its international exchange and $90 million on its US exchange since it filed for bankruptcy on Nov. 11.

FTX founder Sam Bankman-Fried later challenged aspects of the company’s report in a blog post.

Mr. Bankman-Fried, who has been accused of stealing billions of dollars from FTX clients to pay off debts incurred by his cryptocurrency-focused hedge fund, Alameda Research, challenged FTX’s calculations late Tuesday, saying lawyers of the company at Sullivan & Cromwell had presented a “highly misleading” picture of the company’s finances.

Bankman-Fried said FTX has more than enough cash to repay U.S. customers, who he says are owed between $181 million and $497 million, based on his “best estimate.” Bankman-Fried has not had access to FTX data since stepping down as CEO in November.

The company’s lawyers said in a recent court filing that they had opposed Bankman-Fried’s efforts to remain involved in the company’s bankruptcy proceedings.

Bankman-Fried has pleaded not guilty to the fraud charges and his trial is set for October.

FTX provided some additional details about its recovery efforts on Tuesday, claiming to have recovered $1.7 billion in cash, $3.5 billion in liquid cryptocurrencies and $300 million in liquid securities.

“We are making progress in our efforts to maximize recoveries, and it took a herculean investigative effort by our team to uncover this preliminary information,” Ray said in a statement.

Crypto assets recovered to date include $685 million in Solana, $529 million in proprietary FTT token FTX, and $268 million in bitcoin, based on cryptocurrency prices on November 11, 2022. Solana, which has Incense from Bankman-Fried , lost most of its value in 2022.

During FTX’s initial investigation into the hacks of its system, it discovered a seizure of assets in November by the Bahamas Securities Commission, which led to a dispute between the US-based bankruptcy team, FTX states and Bahamian regulators .

The two sides settled their dispute in January, and Ray said Tuesday that the Bahamian government owed $426 million to creditors.

Bahamian Prime Minister Philip Davis addressed the dispute at an Atlantic Council event in Washington on Tuesday, saying Ray’s team had “changed its mind” and accepted that seizing Bahamian assets “was appropriate and perhaps a lifeline for many FTX investors.” .

Source: FTX

And you?

What do you think about this statement from FTX?
What do you think will be the outcome of the Bankman-Fried trial next October?

See also:

Sam Bankman-Fried and his inner circle at FTX had a secret chat group called “Wirefraud”
The FTX collapse causes other cryptocurrency firms to halt withdrawals
The fall of FTX was a crime, not an accident, according to an expert

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