FTX has recovered over $5 billion worth of liquid assets, including cash and digital assets, attorneys in bankruptcy court said.
He said the company’s holdings are so large that selling them would substantially affect the market, driving down their value.
FTX’s collapse was related to, among other things, a failure to correctly mark illiquid assets to market. FTX executives, including Bankman-Fried and Alameda Research CEO Caroline Ellison, borrowed against the value of the FTX-issued token FTT. Alameda controlled the vast majority of FTT coins circulating, similar to a publicly traded companies float, and could not have liquidated their position at full book value.
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