April 19, 2024
FTX's shareholder meeting presentation,
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FTX Unveils Shareholder Meeting Materials: $65 Billion in Claims and Asset Insights

FTX has made public its presentation materials for the shareholder meeting set for September 11–12. The unrestricted section provides a comprehensive overview of the company’s present condition and its gradual progress toward resolution.

The shareholders will begin their day by reviewing the claims against the cryptocurrency exchange. There have been over 2,300 claims filed against it, including ones from Genesis, Celsius, and Voyager, totaling $65 billion in value. However, FTX Digital Markets’ claims are considered invalid or redundant, and the Internal Revenue Service’s claim, the largest at $43.5 billion, is considered subordinate. As of August, there have been more than 36,000 customer claims, amounting to $16 billion, filed against FTX and FTX.US, with 10% of them being approved.

FTX’s assets, encompassing digital assets, cash, brokerage investments, a venture portfolio, tokens, and real estate, surpass $7 billion. FTX possesses 38 properties in the Bahamas valued at $222 million in book value. The company has realized $588 million from avoidance claims thus far, sourced from FTX’s investments, and it is exploring an additional $16.6 billion in potential avoidance claims from investments.

Furthermore, it has identified more than 50 potential actions against insiders, including Sam Bankman-Fried, Nishad Singh, Gary Wang, Caroline Ellison, and more than 40 others, amounting to $2.2 billion. FTX is also considering reclaiming $86.6 million in political and charitable donations and $190.3 million through more than 884 potential actions against vendors.

FTX has identified approximately $833 million in Bitcoin and Ethereum assets, excluding $487 million in BTC- and ETH-denominated securities. Additionally, the company holds over 1,300 other tokens, with the largest holdings being $362 million in Serum (SRM), $309 million in Maps (MAPS), and $164 million in Oxygen (OXY).

The venture portfolio had a value of about $4.5 billion across 438 investments at the time of the bankruptcy, with $3.8 billion already recovered. Equity investments in 202 companies constitute the majority of the remaining funded investments, with the largest being $1.2 billion in crypto-miner Genesis Digital, followed by $500 million in AI firm Anthropic and $110 million in Voyager Digital.

The presentation notes that more than 75 potential bidders have been contacted regarding the relaunch of FTX and/or FTX.US, with a deadline for bids set for September 24. Confirmation of the recovery plan is aimed for the second quarter of 2024. There are indications that FTX may liquidate a significant portion of its crypto holdings in the near future. The restricted portion of the presentation, available to select individuals, contains information on the company’s current tax status, updates on United States Department of Justice restitution, and ongoing litigation, among other sensitive subjects.

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