New FTX Management Team Recovers $7 Billion In Liquid Assets

The new FTX management has recently recovered $7 billion in liquid assets. This recovery comes against the backdrop of a new investigative report released by the now-collapsed cryptocurrency exchange. 

The FTX collapse was one of the most controversial developments in the cryptocurrency industry, having rocked the entire ecosystem. However, there has been significant progress since then, with the new FTX management announcing the recovery of $7 billion in liquid assets, calling the development “substantial progress” in asset recovery. 

The new FTX management also published an investigative report, with the new CEO laying bare the reality of the exchange. 

In the report, the Sam Bankman-Fried-led crypto conglomerate made several false statements to banks about accounts related to using trading firm Alameda Research’s accounts for customer transactions. This was after the affected banks raised several queries about Alameda Trading’s wire transfers and started rejecting them.

The report documented a specific instance where a bank representative asked if an Alameda Research account that received customer deposits would be used to settle trades for the FTX exchange. In response, the report alleges that a senior FTX executive directed an Alameda employee to lie and state that customers occasionally confuse FTX and Alameda but that all incoming and outgoing wire transfers were used to settle Alameda trades. 

The report also alleged that FTX created a new entity called North Dimension Inc. which was falsely advertised as a crypto trading firm with an average monthly trading volume of $10 million and 2000 counterparties. However, in reality, North Dimension Inc. was a shell company that FTX utilized to receive customer deposits and fund withdrawals.

Ready to start trading the Crypto markets? Enjoy free yet reliable Crypto trading signals here.