Now we know why FTX brought in the handler of Enron's bankruptcy as the new CEO, as the company announced its recent recovery of over $5 billion. This figure does not include another $425 million held by the Securities Commission of the Bahamas. FTX's new leadership previously estimated they had only found just over $1 billion; however, initial bankruptcy filings confirmed a value between $1 and 10 billion. Sullivan & Cromwell attorney Adam Landis spoke on behalf of FTX during a hearing Wednesday, noting that the positions could not be sold without affecting the token's market value.
Landis also discussed a cooperation agreement with the Securities Commission of the Bahamas to ensure customers receive their due. A task force was established between creditors and the Bahamas JPL to explore options for the sale or reorganization of FTX's international platform. FTX is doing its best to maximize recoveries while also protecting users' financial interests - a critical step in recovering from such tumultuous times!
Barry Silbert's Letter to DCG Investors
The Digital Currency Group (DCG) has been facing challenges in the current market, as reflected in a letter sent by the company's CEO, Barry Silbert, to shareholders on January 10th. DCG is the parent company of crypto lending firm Genesis Global Capital and Grayscale, the world’s leading crypto asset manager.
In the letter, Silbert addressed the growing issues around DCG and its subsidiaries due to the bear market and the FTX contagion. He noted that bad actors and the failure of leading crypto companies had caused turmoil in the industry and that DCG and its portfolio companies were not immune to these effects.
Silbert also addressed some questions about DCG's relationship with FTX, including the loan agreement with Genesis. He revealed that Genesis had a "trading and lending relationship" with Three Arrows Capital and had invested $250,000 in FTX's Series B funding round in July 2021. Additionally, he disclosed that DCG borrowed $500 million between January and May 2022 at interest rates of 10%-12% and currently owes Genesis $447.5 million and 4,550 Bitcoin, worth $78 million, which matures in May 2023.