“FTX returned $5 billion worth of liquid assets to clients”

FTX has returned more than $5 billion worth of liquid assets to clients, including cash and digital assets, attorneys in Delaware bankruptcy court said Wednesday during a bankruptcy hearing for the collapsed crypto exchange.

This news comes after federal prosecutors announced plans to seize at least $500 million worth of FTX-related assets as part of the lawsuit against FTX founder and former CEO Sam Bankman-Fried.

The return of the assets is good news for FTX customers, after the collapse of the crypto exchange in November. The crypto exchange was previously valued at $32 billion, but collapsed after reports of financial irregularities led to criminal and regulatory investigations and Bankman-Fried’s arrest.

FTX’s new CEO, John Ray, previously testified that at least $8 billion of client assets were not accounted for, and that this was the “worst example” he knew of of corporate oversight.

The $5 billion figure does not include the illiquid cryptocurrency assets, attorney representing FTX, Adam Landis, told the court. According to him, the company’s holdings are so large that their sale will significantly affect the market, and lower their value.