FTX Update: Coin prices rise, selling GBTC, FTX holds $4.4 billion in cash

According to a report from Bloomberg, the bankrupt cryptocurrency exchange FTX had $4.4 billion in cash as of the end of last year, significantly higher than the $2.3 billion at the end of October. However, it is estimated that they still may not be able to repay all customer assets.

FTX Starts Selling Assets, Nearly Fully Exits GBTC

Since Grayscale's GTBC fund successfully transitioned into a Bitcoin spot ETF recently, the price of Bitcoin has been continuously declining. According to previous reports, the cryptocurrency exchange FTX has sold nearly $9 billion worth of the company's stock, and Bloomberg analysts estimate that FTX should have mostly exited its GBTC holdings.

Bloomberg's analysis of the Bitcoin spot ETF: FTX and DCG's dumping impact on GBTC

In addition, FTX's debtor and its Bahamian subsidiary have initiated simultaneous bankruptcy proceedings across jurisdictions, which will also involve dealing with Bahamian real estate.

FTX Cryptocurrency Claims Evaluated at "Bankruptcy Pricing"

However, FTX's debtor assets submitted a revised Chapter 11 reorganization plan on 12/16, which states that FTX cryptocurrency claims will be evaluated at "bankruptcy pricing." At that time, the coin prices were near their low, severely affecting the rights of customers.

On 1/12, creditors filed objections with the court overseeing FTX, arguing that the current value of these assets should be properly assessed to maximize the interests of the creditors. They also highlighted the significant increase in SOL, which should benefit the creditors.

FTX creditors received a letter from Kroll? Conversion price list for claims: BTC 16K/ETH 1.2K/SOL 16/FTT not calculated

With Numerous Customer Assets, Court Orders FTX to Appoint Independent Examiner for Investigation

On January 19, the US Court of Appeals for the Third Circuit ruled that FTX must appoint an independent examiner for investigation. Given that the customer assets involved in this case amount to billions of dollars, the appointment of an examiner reflects Congress's commitment to protecting debtors and creditors in cases involving significant public interest.

The US Trustee for Bankruptcy Administration believes that an independent examiner should investigate FTX's fraud and mismanagement before its closure, stating that this investigation is too crucial to be left to the creditors and current management.

The bankruptcy team does not meet the "no conflicts of interest" standard, and the judge orders FTX to appoint an independent examiner.