FTX's ( FTT-USD ) new leadership is making progress in recovering lost assets as part of the cryptocurrency exchange's efforts to repay creditors, having located more than $5B in cash, sellable crypto and liquid investment securities, CoinDesk reported Wednesday, citing a the company's bankruptcy lawyer during a hearing in Delaware. That figure represents a significant improvement from the more than $1B found last month. Still, there is more that needs to be clawed back for customers in an amount that is unclear, said Sullivan & Cromwell attorney Adam Landis. "[It] just does not ascribe any value to holdings of dozens of illiquid cryptocurrency tokens, where our holdings are so large relative to the total supply that our positions cannot be sold without substantially affecting the market for the token," Landis said, as quoted by CoinDesk. Under the leadership of disgraced FTX co-founder Sam Bankman-Fried, Alameda Research, which acted as FTX's trading desk, borrowed from FTX customers without their permission, Landis noted, adding that the funds were then used to buy planes, houses, make political donations and make extend personal loans to executives. That has led to a "shortfall in value" for the disbursement to customers, he said. "The amount of the shortfall is not yet clear. It will depend on the size of the claims pool and our recovery efforts. But every week, we come closer to completing the work necessary to estimate recoveries for the purposes of a plan of reorganization." According to a recent bankruptcy document, Tom Brady, Gisele Bündchen and Robert Kraft are among the most high-profile shareholders of FTX.
