assets

FTX has recovered $5B in liquid assets, bankruptcy lawyer says

FTX investor Mark Miller discusses the fallout from FTX after losing $25,000 in the collapse.

Bankrupt cryptocurrency exchange FTX has recovered upwards of $5 billion in liquid assets, an attorney for the failed platform told a judge Wednesday.

FTX logo

The FTX Arena name is still visible where the Miami Heat basketball team plays in Miami on Nov. 12, 2022. Lawyers for FTX disclosed Wednesday that more than $5 billion in liquid assets have been recovered so far. (AP Photo/Marta Lavandier / AP Newsroom)

That figure includes cash, liquid digital assets and investments securities, the lawyer said.

FTX BUSINESS SALES DRAW OVER 100 EXPRESSIONS OF INTEREST

The revelation comes as FTX’s new leadership, led by current chief executive John J. Ray III, try to recover what they can of customers’ and investors’ funds following the firm’s collapse under previous CEO and founder Sam Bankman-Fried.

FTX CEO John Ray III testifies before the House Financial Services Committee

John Ray, CEO of FTX Cryptocurrency Derivatives Exchange, speaks during a House Financial Services Committee hearing investigating the collapse of FTX in Washington, D.C., on Dec. 13, 2022. (Al Drago/Bloomberg via Getty Images / Getty Images)

Prior to its downfall, FTX was the world’s second-largest crypto exchange and was once valued at an estimated $32 billion.

DOJ

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January 22, 2023 by ATTORNEY

Former Willmar attorney sentenced for bankruptcy fraud

ST. PAUL, Minn – Gregory Anderson, a former attorney from Willmar, has been sentenced to 18 months in prison for helping a client appear unable to repay his creditors, says United States Attorney Andrew Luger. 

According to Luger’s announcement, Anderson filed a voluntary bankruptcy petition on behalf of his client, James Rothers, on Nov. 3, 2015. Anderson created fake liabilities to make it seem like Rothers was insolvent, when, in fact, he could’ve repaid his creditors with ease.

Rothers had over $1 million dollars in assets including gold coins, separate bank accounts, and uncashed checks. Rothers even paid part of Anderson’s legal fees using a concealed bank account that Anderson helped set up.

An investigation conducted by the Federal Bureau of Investigation revealed that Anderson knew about Rothers’ assets, and conspired to make him appear unable to repay his debt.

Anderson pleaded guilty to one count of fraudulent concealment of bankruptcy assets early August. He was sentenced Wednesday to 18 months in prison followed by one year of supervised release. Anderson will also be required to pay a $20,000 fine.

Rothers pleaded guilty to one count of fraudulent concealment of bankruptcy assets in November of 2019, and will be sentenced

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December 13, 2022 by ATTORNEY

FTX Is Allowed to Hide the Identity of Its 50 Biggest Creditors

(Bloomberg) — FTX creditors, including rich investors who don’t want their names made public, can remain anonymous and still participate in the company’s bankruptcy case for now, a judge ruled at the company’s first court hearing Tuesday. 

US Bankruptcy Judge John Dorsey agreed to let the fallen crypto exchange redact the names of the 50 biggest unsecured creditors owed a total of $3.1 billion. The US Bankruptcy Code normally requires the names be filed in documents available to the public. Representatives for FTX argued those creditors are also customers and disclosure would allow rivals to steal their business. 

The sudden fall of Sam Bankman-Fried’s crypto empire into bankruptcy Nov. 11 was so fast, and so disorganized that many standard procedures, including Tuesday’s hearing, have been subject to delays. The hearing began with FTX attorney James Bromley saying a “substantial amount” of the group’s assets “have either been stolen or are missing.” 

At least two groups of crypto creditors sent lawyers to the hearing to support the company’s request to keep their identities secret. One included members that are among FTX’s largest unsecured creditors — likely setting the stage for future fights for assets among various groups.

Dorsey agreed to

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November 24, 2022 by ATTORNEY
April 2024
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