Crypto

FTX reports $594 million in hacked crypto, Sam Bankman-Fried says FTX US is solvent

Bankrupt crypto exchange FTX has said in a report to creditors that about $US415 million ($594 million) in cryptocurrency had been stolen in hacks.

On Tuesday, FTX has said it had recovered over $US5 billion ($7.16 billion) in crypto, cash and liquid securities, but that significant shortfalls remained at both its international and US crypto exchanges.

The company attributed some of the shortfall to hacks, saying that $US323 million in crypto had been hacked from FTX’s international exchange and $US90 million had been hacked from its US exchange since it filed for bankruptcy on November 11.

Indicted founder Sam Bankman-Fried later challenged aspects of the company’s report in a blog post.

Mr Bankman-Fried, who has been accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund, Alameda Research, pushed back against FTX’s calculations late on Tuesday, saying that the company’s lawyers at Sullivan & Cromwell had presented an “extremely misleading” picture of the company’s finances.

Mr Bankman-Fried said FTX has more than enough money to repay its US customers, whom he says are owed between $US181 million and $US497 million based on his “best guess.”

He has not had access to FTX records since stepping down as CEO in November.

An aerial photograph of the Miami shoreline shows the FTX Arena logo prominently on top of a stadium.
FTX’s collapse was sudden and unexpected.(Reuters: Marco Bello)

A spokesperson for Sullivan & Cromwell declined to comment. However, attorneys at the firm said in a recent court filing that they have rebuffed Mr Bankman-Fried’s efforts to stay involved in the company’s bankruptcy proceedings.

Mr Bankman-Fried has pleaded not guilty to fraud charges, and he is scheduled to face trial in October.

FTX did not provide an estimate of the amount owed to FTX’s US or international customers, and it did not immediately respond to questions about Mr Bankman-Fried’s blog post.

The company provided some additional details about its recovery efforts on Tuesday, saying it had recovered $US1.7 billion in cash, $US3.5 billion in liquid cryptocurrency and $US300 million in liquid securities.

“We are making progress in our efforts to maximise recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information,” FTX CEO John Ray said.

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