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At a recent hearing in Delaware, it was announced the now The defunct FTX cryptocurrency exchange, which crashed in November of last year, has recovered more than $7.3 billion in assets as of this writing. This is an increase of more than $800 million from the month of January.
FTX is trying to bounce back
The company is working to raise as much funds as possible to pay off some of its loans as part of its bankruptcy proceedings, which it first entered about six months ago. The company is completely down and considering reopening in the future at some point, according to FTX attorney Andy Dietderich. In a recent interview, he stated:
The situation has stabilized and the garbage dump fire has been extinguished.
FTX, which first came to fruition in 2019, required just three years to become one of the top five digital currency trading platforms in the world. The company oversaw billions in transactions, and Sam Bankman-Fried, the chief executive behind it, was hailed by many as a genius (his net worth was also in the billions as of late 2022).
Unfortunately, this reputation was short-lived as, in mid-November, SBF complained about a liquidity crisis on social media. He said that he I needed fast money to keep his business running, eventually turning to his biggest rival Binance about a possible purchase. while things seemed to be moving in that direction for some time, Binance finally backed far from the dealclaiming that the problems FTX was facing were simply too big for it to handle.
From there, the company declared bankruptcy and SBF resigned from his position. Things would have been pretty bad if they had stopped there, but the trash meter just kept going up. It was later discovered that SBF had used client funds to invest in luxury real estate in the Bahamas and to pay off loans from his other company, Alameda Research. He he was finally arrested and extradited to the United States. He has entered a plea of not guilty and is awaiting trial in his parents’ house in California.
Rising prices have helped
One of the big things that has helped FTX in the long run is how much cryptocurrency prices have risen in recent weeks. For example, BTC rallied to a whopping $30K some time ago, a huge improvement from where it was late last year (during that time, it was trading in the mid-$16K range).
If the company decides to open its doors for business once again, the choice will rest with new CEO John Ray III, though Dietderich mentioned it will be a while before the company can return that way.