More than $5 billion (£4.1 billion) worth of assets have been discovered, according to a counsel for the defunct cryptocurrency exchange FTX.
The magnitude of consumer damages is yet unknown, a US bankruptcy court was informed on Wednesday.
Authorities have charged Sam Bankman-Fried, the former CEO of FTX, with planning an “epic” scam that may have cost investors, clients, and lenders billions of dollars.
To allegations that he defrauded investors, Mr. Bankman-Fried entered a not-guilty plea.
Andy Dietderich, a lawyer for FTX, informed US Bankruptcy Judge John Dorsey in Delaware, They have identified almost 5 billion dollars in cash, liquid cryptocurrency, and liquid investment assets.
FTX has its headquarters in the Bahamas, where Mr. Bankman-Fried was residing at the time of his arrest, and there were also assets seized by the Securities Commission of the Bahamas, according to Mr. Dietderich.
The majority of FTX’s clients and investors who are experiencing losses were not identified during the proceedings.
Tom Brady, his ex-wife Gisele Bündchen, and Robert Kraft, the owner of the New England Patriots, were all addressed in court filings, though.
The 30-year-old was detained in the Bahamas in December and then deported to the US. He is accused of committing one of the largest financial frauds in US history.
FTX, which had a $32 billion market value a year earlier, filed for bankruptcy on November 11. $8 billion in client cash are suspected to have gone missing.
Federal US prosecutors accuse Mr. Bankman-Fried of using money from FTX clients without authorization to pay his company Alameda Research’s bills and make other investments.
Eight criminal charges, including wire fraud, money laundering, and crimes related to campaign funding, were made public by the prosecution in December. Additionally, claims have been made against Mr. Bankman-Fried by financial regulators.
In connection with their alleged participation in the demise of the company, Caroline Ellison, the former CEO of Alameda, and FTX co-founder Gary Wang have also been charged. They both reportedly cooperated with the inquiry, according to authorities.
Mr. Bankman-Fried was granted $250 million bail and released from custody at the end of December, with the restriction that he remains at his parents’ house in California.
Prior to his arrest, he stated the following: He didn’t intentionally commit fraud. He doesn’t believe he cheated. He didn’t want any of this to occur. Definitely not as capable as he had anticipated.
