February 2, 2023

FTX Scandal: $5 Billion in Assets Found, Identity Theft Protection, and Price Hikes to Come

More than $5 billion in money market funds and government bonds has been found, resulting from the downfall of crypto transfer FTX. However, customers’ lost possession value still needs to be recognized. The US court stated one of Sam Bankman’s attorneys.

The US prosecution found Sam Bankman, the founder of FTX, guilty of deception and trickery. The prosecution added that customers, lenders, and investors undertake an estimated loss of billions of dollars.

Andy Dietderick, one of the FTX attorneys, said to the US bankruptcy judge, John Dorsey, at Wednesday’s hearing in Delaware that they found $5 billion in money market funds, savings accounts, certificates of deposit, and Treasury bills, and short-term government bonds.

Intends to Dispose of Non-Core Assets

A year ago, the company was worth $32 billion. Andy Dietderich says a non-strategic investment with a book value of $4.6 billion is up for selling. Andy Dietderich adds to his report by saying they are coordinating with his team of legal officers to provide a more relevant record of events as the list of customers remains a puzzle, and the approximate value and assets claimed to be lost $ 8 billion and above.

The company administrative center was the Bahamans, where Sam Bankman’s residential quarters were. Andy Dietderich states the frozen $5 billion assets found excluded from the securities commission at their base of operation.

Andy Dietderich continues to add that the confiscated property ranges to about $170 million. Still, according to local authorities in the Bahamas, the presumed amount should be $3.5 billion in money market funds, savings accounts, certificates of deposit, Treasury bills, and short-term government bonds.

FTX to Raise Prices

Following the hearing on Wednesday, Andy Dietderich agrees on the move to satisfy their customers’ wants by slightly raising the FTX sales starting next month. Business partners of the FTX, including FTX Japan, FTX Europe, Embed, and Ledger x, form the general FTX company.

From the Wednesday hearing, the business partners have approved a push to sell the company to compensate for their loss, but according to Sam Bankman, he is not willing to give up the business.

The US government Trustee denied selling the business partners until they fully researched the allegations about the FTX charges. In addition, FTX has messaged Andy Dietderick to maintain a closed, confidential record of their customers.

FTX aims to prevent its customers’ exposure to other successful crypto investment companies. The FTX states that it has approximately 9 million customers, and thus secrecy is needed for identity theft.

Preventing Identity Theft

The FTX pleaded to John Dorsey for a grace period of six months to put their case in line, but the US bankruptcy Judge granted FTX a maximum of three months. Judge John adjourned the hearing to January 20, providing time for FTX to differentiate between their customers and those trying to impersonate the customers.

John also wants the risk of exposing the customers’ identities to be made clear whether it is safe or not to do so. According to the US bankruptcy law and the media, companies expose investors’ details to ensure valid transaction accuracy.

What are your views about the developing updates about the fallen FTX? You can use the reply section below to leave your reply.

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