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FTX is selling off cryptocurrency assets and accumulating cash as bankruptcy advisers seek a way to repay customers whose accounts have been frozen since the platform collapsed in 2022. According to monthly operating reports under Chapter 11 of the U.S. Bankruptcy Code, FTX's four largest subsidiaries, including FTX Trading Ltd. and Alameda Research LLC, nearly doubled their cash reserves by the end of 2023, rising from around $2.3 billion in late October to $4.4 billion. If other subsidiaries are taken into account, the company's total cash holdings may be even higher. In a court filing last month, the company stated that as of December 8, FTX raised $1.8 billion by selling part of its digital assets. FTX also mentioned engaging in Bitcoin derivatives trading to hedge against Bitcoin risk exposure, generating additional income from its digital assets, and exploring the possibility of restarting the exchange. |
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