New Court Filing: FTX Holds $1.1 Billion in SOL and $560 Million in BTC
In a Monday court filing, the company said it has managed to secure $1.5 billion in cash in addition to the $1.1 billion it held as of November 11, when it filed for bankruptcy.
Furthermore, FTX possesses $3.4 billion worth of various cryptocurrencies as of August 31, which include over 1,300 lesser-known and potentially less liquid tokens, such as MAPS and Serum (SRM).
The filing also shed light on significant payments made by the company to senior executives, including founder Sam Bankman-Fried, prior to its bankruptcy filing in November.
More specifically, it revealed that Bankman-Fried and other executives, namely Nishad Singh, Zixiao "Gary" Wang, and Caroline Ellison, received a total of $2.2 billion in cash, crypto, equity, and real estate in the months preceding the bankruptcy.
This detail is significant because US law permits such payments to be recovered and added to the pool of assets available for distribution among creditors.
Additionally, the court filing discloses the ownership of 38 condos, penthouses, and other properties in the Bahamas with an estimated value of approximately $200 million.
New FTX Management Strives to Recover Funds
FTX's new management has made efforts to reclaim funds that were allegedly mismanaged by Bankman-Fried and other executives.
For one, the company has tried to recover funds donated to politicians and charitable organizations, including the Metropolitan Museum of Art in New York.
More recently, the company's advisers revealed that they are investigating the possibility of reclaiming millions of dollars paid to celebrities, including Shaquille O'Neal and Naomi Osaka, for their endorsements of the platform.
Furthermore, FTX has initiated legal action against Kives and his venture capital firm, K5, to recover the estimated $700 million Bankman-Fried had invested in it.
The complaint claims that Bankman-Fried was a "profligate patron" who sent millions to Kives, K5 Global, and Baum after he attended a social event hosted by Kives in 2022.
FTX has sought the return of funds transferred from Alameda Research that ended up in SGN Albany Capital and funds transferred from Kives, Baum, and SGN Albany Capital to Mount Olympus Capital.
Meanwhile, in an attempt to repay creditors in cash, FTX has sought permission from a New York judge to initiate the sale of its crypto holdings.
In fact, fears that the bankrupt crypto exchange may soon liquidate significant portions of SOL have crashed the token's price.
A number of users have also taken to X (formerly known as Twitter) to voice their concerns over the impending sell-off.
“FTX about to dump $680 mil worth of SOL,” wrote one user.
“SOL is going to dump hard after FTX sells its bag, going to reach 14$ soon,” said another user.
However, some users mentioned that the bankruptcy plan actually restricts how much can be sold off at once.