In an endeavor to refund customers following the 2022 platform crash, leading crypto firm FTX is selling off digital assets to amass cash. According to Chapter 11 operating reports, the four main affiliates of the company, including FTX Trading Ltd. and Alameda Research LLC, managed to amplify the cash stash nearly two-fold, taking it from $2.3 billion in October end to $4.4 billion by 2023’s end. Likely, the total cash has increased when considering the contributions of other affiliates.
In a court document filed recently, FTX affirmed that it has generated $1.8 billion through the sale of select digital assets up until December 8. The firm also divulged its ongoing Bitcoin derivative activities aimed at dodging Bitcoin exposure and amplifying yield on the digital holdings. An additional approach is being considered to reactivate the exchange.
The rise in customer holdings has mirrored FTX’s swelling cash reserves, coinciding since the firm’s downfall in November 2022. Bankruptcy advisers have successfully identified assets and crafted deals to favor the smaller account holders. Stringent actions have been taken against former associates of Sam Bankman-Fried and crypto companies like Bybit Fintech Ltd. who withdrew funds before Chapter 11 was filed. However, despite these actions, FTX has suggested the possibility that all customers might not be fully repaid, with a more significant loss directed towards customers on FTX.com. There is ongoing opposition from numerous FTX customers towards a company proposal that suggests assessing their digital assets’ value at the time of the bankruptcy filing, leaving them to solely bear the surge in Bitcoin and other tokens over the past year.