Sam Bankman-Fried’s attorneys are revealing that billions of {dollars} price of liquid belongings has been recovered from bankrupt crypto trade FTX.
Based on a brand new report by CNBC, legal professionals representing the disgraced former CEO have instructed a choose that $5 billion in money, digital belongings, and different securities have been recovered from FTX.
Legal professional Adam Landis instructed the court docket that the $5 billion price of recovered belongings don’t embrace any illiquid digital currencies, including that FTX’s holdings are so massive that promoting them would drive down the costs of crypto belongings.
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 of liquidate their place at full e book worth.
FTX’s new chief government, John R. Jay of Enron fame, who took the helm from Bankman-Fried late final yr, beforehand stated that no less than $8 billion price of person belongings had been unaccounted for in one of many worst instances of company management he’s ever witnessed, in response to 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 traders and mishandling person funds and is dealing with over 100 years in jail if convicted.
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