According to Bloomberg, FTX is selling crypto assets and hoarding cash to repay customer assets whose accounts have been frozen since the platform collapsed in 2022.
FTX’s four largest subsidiaries, including FTX Trading Ltd. and Alameda Research LLC, nearly doubled their cash reserves to $4.4 billion at the end of 2023 from about $2.3 billion at the end of October, according to its monthly Chapter 11 operations report. The company’s cash total is likely higher if other subsidiaries are included.
The company said in a court filing last month that as of Dec. 8, FTX raised $1.8 billion by selling some of the company’s digital assets. FTX also said it is trading bitcoin derivatives to hedge its exposure to bitcoin and generate additional income from its digital assets, while exploring the possibility of restarting the trading platform.
