According to a creditor meeting, FTX has more than $1 billion in cash.

FTX management is currently attempting to reclaim hundreds of millions of dollars in cash from hundreds of bank accounts in order to rectify the collapsed crypto exchange’s predicament, creditors were informed today.

The company’s new management, which took control when FTX founder Sam Bankman-Fried left on November 11, told a procedural hearing on Tuesday that it had discovered more than $1 billion in assets. The company discovered around $720 million in cash assets, which the exchange has yet to consolidate in U.S. financial institutions approved by the Department of Justice to handle funds. Another over $500 million is already held in US financial institutions.

“We’re reaching out to all of those banks and changing the signatories on the accounts so that we can get access to the accounts and move as much cash as we can to authorized depository institutions,” FTX’s new Chief Financial Officer Mary Cilia said under oath during a portion of the bankruptcy proceedings.

Cilia estimates that some $130 million in cash is locked up in Japan, where local restrictions have largely ringfenced funds for local clients.

Another $6 million is set aside for operational expenses such as salaries, while the majority of the remaining $423 million is held by a single broker, she continued, but she declined to identify the broker. Cilia stated that $485 million is already in an authorized deposit facility.

There are “ongoing attempts” to identify the company’s international crypto assets and transfer them to cold wallets using custodial providers like Bitgo. According to Steve Coverick, a senior director at FTX’s financial advisors Alvarez & Marsal.

The Chapter 11 bankruptcy hearings are intended to conclude the swap, but they have been hindered by alleged poor governance and document-keeping under Bankman-leadership. Fried’s According to Coverick, the company’s new management was required to analyze customer terms and conditions that were stored in various locations such as Google Drive and Slack.

The company has yet to file a statement of assets or financial condition, as required by US bankruptcy law, and Cilia expects it will be able to do so in April. The corporation is currently attempting to figure out how many staff it has internationally (Cilia estimated 220) and how much money was removed prior to the bankruptcy.

   Source: https://www.coindesk.com/policy/2022/12/20/ftx-has-over-1b-in-cash-creditor-meeting-told/