As controversial founder Sam Bankman-Fried is sentenced to years in prison, a bankruptcy lawyer for cryptocurrency startup FTX claimed that the company had already recovered almost $5 billion in cash and securities.
After its catastrophic collapse in November, attorneys have been seeking to recover funds from the large corporation in order to reimburse creditors. Bankman-Fried, 30, was detained in the Bahamas the following month and has since been extradited to the United States.
FTX Recovers Money
“We have located nearly $5 billion in cash, liquid cryptocurrencies, and liquid investment securities based on their worth as of the petition date.”
Sullivan & Cromwell attorney Adam Landis stated during a court hearing on Wednesday that it does not ascribe any value to holdings of dozens of illiquid cryptocurrency tokens, where our holdings are so large relative to the total supply that our positions cannot be sold without substantially affecting the market for the token.
Initial bankruptcy papers disclosed that FTX owed between $1 billion and $10 billion to its creditors, however, the precise sum remains unknown.
Bankman-Fried is accused of transferring customer assets from FTX to an affiliated hedge fund, Alameda Research. These assets were allegedly utilized for personal loans to Bankman-Fried and others, as well as a sort of slush fund for political donations, parties, and other expenses.
Read more: Former FTX CEO Sam Bankman-Fried pleads not guilty on all counts of fraud
Bankman-Fried’s Lavish Lifestyle
Despite portraying an image of frugality by wearing shorts and wrinkled T-shirts during television interviews, court documents reveal how much money Bankman-Fried spent in the months preceding his downfall.
According to court filings, the Bahamian affiliate of the company, FTX Digital Markets, spent $15,4 million on luxury hotels and lodging in just nine months during the previous year.
Additionally, Business Insider revealed last week that FTX spent close to $7 million on food and entertainment.
Bankman-Fried was headquartered in a luxurious penthouse on New Providence, the most populous island in the Bahamas and the location of the country’s capital, Nassau.
The penthouse was a part of the Albany luxury resort complex, which spans 600 acres and has residential real estate, a hotel, dining options, 18-hole championship golf.
In 2021, one of Albany’s owners told Fortune that the resort, which is frequented by A-list celebrities, can charge up to $60,000 per night for accommodations.
Read more: FTX bankruptcy: US investigators look into $372 million hacking theft
