Since FTX was approved to sell its cryptocurrency assets in September last year, wallets associated with FTX have frequently transferred funds to other exchanges and unlocked hundreds of millions of dollars worth of cryptocurrency collateral from staking platforms. Bloomberg recently reported that the bankrupt exchange FTX has been liquidating a large amount of cryptocurrency assets in the past few months in preparation for a potential restructuring plan.
The report cited bankruptcy operational reports of four subsidiaries of the FTX Group, according to data from December 2023, the company’s advisors have sold a large amount of the group’s cryptocurrency assets, increasing the company’s cash reserves from $2.3 billion in July to $4.4 billion.
These four institutions include FTX Trading, Alameda Research, West Realm Shires Inc, and Clifton Bay Investments. West Realm Shires is the holding company of FTX’s subsidiary in the United States, FTX.US, and Clifton Bay Investments is one of the many companies invested in by FTX Ventures’ venture capital department.
In fact, after entering January 2024, FTX’s cash reserves continued to increase. According to previous reports by Zombit, after GBTC successfully transformed into a spot ETF, FTX sold all of its GBTC shares and exchanged them for nearly $1 billion in cash reserves, meaning that FTX’s current cash reserves may exceed $5.4 billion.
However, despite significant progress in restoring the value of liquid assets, some creditors are planning to challenge the estimation method of their compensation due to significant differences between the current value of cryptocurrency assets and the price at the time FTX filed for Chapter 11 bankruptcy, in order to reconsider the valuation of their claims.