FTX's bankruptcy proceedings keep chugging along

If pre-bankruptcy FTX was acne, its new post-bankruptcy management team would be Proactiv. Which is to say: the defunct crypto exchange’s financial situation is starting to get more clear.

At a court hearing in Delaware yesterday, bankrupt crypto exchange FTX revealed that it’s now recovered more than $5 billion in cash and other liquid assets, up from $1 billion recovered as of last month.

And on top of that, FTX’s lawyers said the exchange is hoping to sell hundreds of investment holdings that had a book value of $4.6+ billion as of November 11 (though many were into crypto-focused companies that have declined in value since then).

🤷‍♀️ But that’s about where the clarity ends… If this was 1996, FTX’s management could’ve been the star of Jerry Maguire – because they’re currently shouting “SHOW ME THE MONEY!!!”

After FTX filed for bankruptcy in November and its execs were replaced, the company’s new management committed to “building financial statements from the ground up.” Which was made necessary since the exchange previously lacked normal corporate controls and didn’t keep reliable records.

Over the past two months, FTX’s new management has identified:

• An estimated 1 million creditors, who typically take first priority over account holders when it comes to getting their money back.
• More than 9 million customer accounts, though it’s still attempting to figure out exactly how much each customer is owed. Some estimates peg the overall figure as high as $10 billion.

👀 Looking ahead… Customers, nonprofits, and political orgs previously involved with FTX are like the little green aliens in Toy Story – and the clawwwwwwwback is coming. As the bankruptcy process continues, FTX's legal team will continue trying to recoup funds – including past investment returns, some customer withdrawals, and political/charitable donations – for eventual disbursement to creditors and customers.