• FTX, a bankrupt cryptocurrency exchange, has recovered $7.3 billion in assets and may be poised for a revival in 2024.
• The recovery was aided by the appreciation of crypto asset prices over the last few months.
• During a bankruptcy hearing, lawyers representing FTX stated that the situation has stabilized and distributable assets should increase as the case progresses.
FTX, a bankrupt cryptocurrency exchange, has managed to recover a majority of its assets owed to customers and may be poised for a revival next year. The recovery was partly aided by an appreciation in crypto asset prices over the last few months, helping strengthen FTX’s balance sheet. During a bankruptcy hearing on Wednesday, lawyers with Sullivan and Cromwell representing FTX said the exchange now possesses $7.3 billion in distributable assets including cash and crypto.
The appreciation of crypto assets on its balance sheet has FTX’s prospects looking more hopeful than before. In January, FTX’s lawyers reported that it had identified $5.5 billion in liquid assets including $1.7 billion in cash, $0.3 billion of securities, and $3.5 in crypto based on prices at the time when Bitcoin’s price stood narrowly above $21,000 on the day of release of press release detailing these figures.
Lawyer Andy Dietderich noted that crypto asset prices will be expected to rise and fall during the case but emphasized that it is important not to lose what they have now as he stated “We will be increasing distributable assets – hopefully dramatically – as the case progresses” adding that “the situation has stabilized and the dumpster fire is out“.
FTX plans to restart operations sometime in 2024 depending on market conditions if it can do so without incurring any significant losses or liabilities going forward as mentioned during Wednesday’s hearing held remotely through video conferencing due to Covid-19 pandemic restrictions which are still active across certain parts of United States despite vaccine rollouts gaining traction worldwide since late 2020..
The prospects for FTX look positive given its ability to recover most of its assets owed to customers even though relaunching depends heavily upon market conditions being favorable going forward into 2023-24 financial year while also ensuring no major liabilities are incurred along way once operations resume sometime next year if things go according plan..