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Sam Bankman-Fried says FTX US is solvent

Since leaving his position as CEO in November, Sam Bankman-Fried has yet to have access to FTX documents

In a report to creditors, the bankrupt cryptocurrency exchange FTX stated that attacks had stolen around USD 415 million in cryptocurrency.

However, there were still significant shortages at its worldwide and U.S. crypto exchanges, according to FTX, which claimed to have recovered more than USD 5 billion in cryptocurrency, cash, and liquid securities. FTX said that some of the shortfalls were caused by cyberattacks, claiming that since it filed for bankruptcy on November 11, there had been USD 323 million in cryptocurrency stolen from its international exchange and USD 90 million stolen from its U.S. exchange.

Later, in a blog post, indicted founder Sam Bankman-Fried disputed some study elements.

Sam Bankman-Fried disputed FTX’s calculations, claiming that the company’s attorneys at Sullivan & Cromwell had provided an “extremely misleading” picture of the company’s finances. Sam Bankman-Fried is suspected of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund, Alameda Research.

According to Sam Bankman-Fried, FTX has more than enough cash to pay back U.S. clients who, in his “best guess.” are due somewhere between USD 181 million and USD 497 million. However, since leaving his position as CEO in November, Sam Bankman-Fried has yet to have access to FTX documents.

A Sullivan and Cromwell spokeswoman declined to comment. However, in a recent court filing, the firm’s lawyers stated that they had rejected Sam Bankman-Fried’s attempts to continue participating in the bankruptcy procedures for the business.

Sam Bankman-Fried will go on trial in October after entering a not-guilty plea to the fraud accusations against him.

In addition to failing to reply to inquiries on Sam Bankman-Fried’s blog post immediately, FTX needed to estimate how much was owed to either its domestic or international clients.

A few days back, FTX published more information regarding its recovery efforts, stating that it has recovered USD 1.7 billion in cash, USD 3.5 billion in liquid bitcoin, and USD 300 million in liquid securities. Ray said in a statement that we are making headway in our attempts to maximize recoveries.

Based on cryptocurrency prices on November 11, 2022, the recovered crypto assets total USD 685 million in Solana, USD 529 million in FTX’s proprietary FTT token, and USD 268 million in bitcoin. Sam Bankman-Fried praised Solana, but it lost most of its worth in 2022.

FTX’s initial inquiry into system hacks revealed a Securities Commission of the Bahamas asset seizure in November, which sparked a conflict between FTX’s bankruptcy team in the United States and Bahamian regulators.

Ray had recently announced that the Bahamian government was holding USD 426 million for creditors as a result of the two parties’ resolution of their differences in January.

During a discussion at the Atlantic Council in Washington, Bahamas Prime Minister Philip Davis brought up the conflict. He said Ray’s team had “come around” and agreed that the Bahamian asset seizure “was appropriate and perhaps has saved the day for many of the investors in FTX.”

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