FTX, a bankrupt cryptocurrency firm, is making efforts to repay its customers by strategically liquidating its crypto assets and bolstering its cash reserves. The company, which has been unable to access its accounts since its downfall, is taking significant steps to address the situation.
Key affiliates of FTX, including FTX Trading Ltd. and Alameda Research LLC, have substantially increased the group’s cash to $4.4 billion by the end of 2023. This is a significant rise from the $2.3 billion recorded in late October. It is expected that the overall figure will be even higher when considering all of FTX’s affiliates. Bloomberg reports that the company raised $1.8 billion through selling some digital assets as of December 8.
To manage its exposure to cryptocurrency and generate additional revenue from its digital holdings, FTX is also engaging in Bitcoin derivative trades. The company is exploring plans to restart the exchange, potentially providing further opportunities for revenue generation.
Since its implosion, FTX’s bankruptcy advisers have been working to locate assets and negotiate agreements to benefit customers, particularly those with smaller accounts. The firm has initiated lawsuits against former associates of Sam Bankman-Fried and other crypto entities that withdrew funds before the bankruptcy declaration.
Despite these efforts, FTX has admitted that full customer repayment is unlikely. The trading value of customer claims has recently risen, with claims over $1 million trading at approximately 73 cents on the dollar, an increase from 38 cents in October. However, FTX.com customers are expected to bear a larger proportion of the losses.
It is important to note that this article was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. The photo accompanying this article is from Shutterstock.
