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In a turn of events that most of us most likely did not see coming, the fallen crypto exchange FTX has supposedly recovered $7.2bn worth of customers’ funds. And to make things even more questionable/interesting, lawyers say that the exchange could even be restarted sometime this year.

During the bankruptcy court hearing in Delaware FTX layers announced the recovery of over $7.3 billion on customers funds in cash and liquid crypto assets, this is partially thanks to the recent rise we have seen in the crypto markets with the original assets being recovered valued at $6.2 billion in November when the originally bankruptcy claim was filed.

Thanks to the recent rises in prices across the board in the crypto space the assets have now gained upwards of $800m more in value.

FTX currently holds around $4bn in crypto assets in large tokens with liquid markets, many are wondering what the dumping of these assets could do to the market. When FTX first collapsed we saw the whole market react as the Bitcoin price quickly plummeted below $20,000, it has since risen back to $30,000.

FTX was being run and operated out of the Bahamas by Sam Bankman Fried, due to this there is still a number of assets still locked in the Bahamas that have been seized by the country’s securities commission.

The US-based FTX legal team is currently in a legal fight with the Bahamian regulators to try and reclaim these assets, though the majority of these seized assets are the FTT token, FTX’s native cryptocurrency which has fallen 97.5%.

Could FTX make a return?

The FTX lawyers have announced that the FTX exchange would need significant funding to reopen as the application itself would need a lot of work to ensure the money and transactions was managed in an efficient manner, something that didn’t happen while Sam ran the exchange.

The current FTX CEO, John Ray has detailed how improper funds management and bad accounting was the downfall of FTX, something that would cost a lot to fix if they were to reopen the exchange.

At the present, the FTX legal team does not have a decision on whether they will use the recovered funds to repay customers or use those funds to reopen the exchange. Currently, only customers from Japan have been able to reclaim and withdraw lost funds, largely thanks to Japan’s very strict crypto regulations, it is unsure which countries will follow.

Sam Bankman Fried, the disgraced founder of FTX has been charged with multiple counts of fraud that prosecutors are calling one of the “biggest financial frauds in American history”. Sam is still pleading not guilty to all charges.

Last week in court Sam Bankman Friend pleaded not guilty to eight counts of fraud and conspiracy as prosecutors claim he stole customers’ funds and lied to investors about the financial state of the company. Investors’ funds were then used to cover trading losses at his hedge fund Alameda Research.

So how are we all feeling about this recent news?

The team has recovered upwards of $7bn in lost customers’ funds and they are toying with the idea of reopening the exchange later this year?

Shouldn’t customers be made whole using these funds rather than trying to “reinvest” them into the relaunch of FTX?

What do you think? Lets us know your thoughts on Twitter.

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