FTX eyes recovery of assets with work for the future in process

Since FTX’s collapse about four months ago, there has been instability in the cryptocurrency market, forcing holders to follow the wait-watch principle. Things have not been working well for Sam Bankman-Fried since then. He is the former Chief Executive Officer of FTX who has pleaded not guilty to charges filed against him. At the same time, his colleagues, or rather, the inner circle members, have taken a contrasting stand by pleading guilty and agreeing to cooperate with the investigation.

Now it is being learned that FTX is moving forward with a new CEO leading the ship. John Ray has entered the picture with an eye for the future when FTX resumes its exchange services worldwide.

Andy Dietderich, the attorney for FTX, has interacted with the media to inform them that the venture is indeed working to make its future bright by moving on from history. Andy has shared that FTX has recovered approximately $7.3 billion in cash and liquid crypto assets.

It signals that FTX is still working to recover the losses it suffered under the regime of Bankman-Fried. Andy said the dumpster fire is out, adding that the situation has stabilized. Although the situation is one-sided at the moment, the validity of the situation will soon be verifiable as it moves forward and makes some progress.

John Ray has held the previous management accountable for their improper fund transfers and poor accounting practices, describing the same as a complete failure of control. This is a language that the entire community has been speaking since the bankruptcy announcement by FTX.

Crypto deposits have been locked up for the users since November 2022, except for those residing in Japan, courtesy of the region’s strong regulations over the crypto sphere. This could soon change, allowing users to withdraw their funds as usual in the days to come.

The priority is restarting the exchange services, which requires significant capital. It will either be raised from external sources or the venture will deploy its own funds. Dietderich has said that there is less clarity over the fact that FTX would utilize its own funds rather than use that money to repay customers. Meaning, the possibility that FTX will look to external sources is greater than one can imagine.

It requires large amounts of funds, and that weight cannot be balanced by internal funds considering users are still looking for ways to get their funds back.

Another aspect that FTX is looking into is preliminary Chapter 11, something that could possibly bring FTX out of bankruptcy. The plan is tentatively scheduled to be tabled in July, with approval expected to come mostly by the second quarter of the next year, which is 2024.

What causes this long timeline is the conflict among creditors over the share of assets in the crypto venture.

Overall, Andy Dietderich has clarified that FTX is intensely looking to rectify past mistakes for a bright future. The community, until then, only has the option to stick to its grounds with more optimistic hopes.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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