During a bankruptcy court hearing on Wednesday, a failed crypto firm lawyer said that crypto fraud FTX officials overseeing its bankruptcy have recovered more than $5 billion in cash and other liquid assets to help repay creditors. Moreover, reports say that more funds are still to be released that can later be used to pay the users who have been frauded by the company.
Crypto Fraud FTX: New Recovery
According to US Bankruptcy Judge John Dorsey, over $5 billion have been found from the FTX crypto fraud in the form of cash, liquid cryptocurrency, and liquid investment securities.
FTX ex-CEO Sam Bankman-Fried was alleged of wordlessly transferred funds from FTX to Alameda Research to help them pay their debts. The crypto fraud FTX mastermind Sam Bankman has caused losses to cost investors, lenders, and customers in terms of billions of dollars.
Also Read: FTX Crypto Assets Worth $3.5 billion Seized!!
FTX was at a valuation of $32 billion but soon after Sam forwarded the assets to Alameda Research. The company suffered substantial loss and that led loss of around $8 billion of customer funds. The case went into publication when the company felt the loss and soon enough it crashed to dust.
Failed crypto exchange FTX has recovered over $5 bln, attorney says https://t.co/S5hXvWLlfk pic.twitter.com/oqoRikryRB
— Reuters Business (@ReutersBiz) January 11, 2023
Sam was renowned for becoming one of the youngest billionaires in the world. However, his major involvement in crypto fraud FTX resulted in severe backlash, and all of his property was brought to ashes. The culprit however still stays committed to not being guilty as he says he didn’t do that.
Sam was arrested earlier in December 2022 with suspicion of involvement in criminal charges including money laundering and campaign finance violations. However, he was later released in December itself claiming a $250 million bail. The bail was granted as he didn’t want to leave his parent’s house back in California.
Sam Bankman-Fried has arrived in court for his arraignment. We’re told he will plead not guilty to all the charges against him. pic.twitter.com/yakSLkOus8
— Connell McShane (@connellmcshane) January 3, 2023
Also Read: 8 Top Crypto Frauds That Caused Loss of Over $3 Billion!!