VOT Research Desk
Prior to U.S. bankruptcy hearings later on Tuesday, a court filing by advisors on the struggling crypto exchange’s restructuring revealed that FTX has a total cash balance of $1.24 billion.
An estimated 1 million creditors are now facing damages totaling billions of dollars as a result of the collapse of FTX, long one of the biggest cryptocurrency exchanges in the world. According to a declaration made on Monday by Edgar Mosley of Alvarez & Marshal, a consulting firm FTX is receiving advice from, its cash level as of Sunday was significantly higher than believed.
It includes almost $400 million at Alameda Research accounts, the cryptocurrency trading business controlled by Sam Bankman-Fried, the creator of FTX, and $172 million at FTX’s Japan division.
FTX announced on Saturday that it has started a strategic evaluation of its worldwide assets and is getting ready to had previously stated that it owed its 50 biggest creditors roughly $3.1 billion for the sale or reorganisation of several firms.
Prior to a hearing on FTX’s so-called first-day motions scheduled for Tuesday morning before a U.S. bankruptcy judge, the specifics of the company’s cash levels were revealed.
According to Reuters, Bankman-Fried used $10 billion in secret customer deposits to support his trading business, and at least $1 billion of those deposits had disappeared.
