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Is FTX on the road to recovery?

The company’s lawyer said that the FTX “dumpster fire is out” after recovering $7.3 billion in assets.

Bankrupt exchange FTX has now recovered $7.3 billion in cash and liquid crypto assets, Reuters reported. The figure is an increase of more than $800 million since January.

“The situation has stabilized, and the dumpster fire is out,” FTX attorney Andy Dietderich said on Wednesday at a U.S. bankruptcy court hearing in Delaware.

Dietderich added that FTX, now led by CEO John Ray, has benefited from the recent rise in crypto prices.

The past week has seen Bitcoin break into $30,000, the highest figure since June 2022. Ethereum, similarly, broke into the $2,000 mark following a successful major upgrade, the highest figure since August 2022. Bullish trends have pumped $1bn back into FTX, according to the court filing.

Read more: Bitcoin climbs to $30,000 for the first time since June 2022

Dietderich said that FTX is now negotiating options for restarting the exchange with stakeholders. A decision may come by late June, with the actual reboot potentially taking place in the second quarter of 2024.

Figures from CoinGecko show the price of FTT increased by 112% following news of the hearing, rising from from $1.32 to $2.80.

The hearing offered little detail on what a recovery would mean for customers who have been unable to access their deposits since the collapse.

In the months since the collapse, FTX has been scrambling to collect resources and pinpoint what went wrong under Sam Bankman-Fried’s leadership.

It is understood that Bankman-Fried left the exchange in such a mess that the new FTX administration has resorted to combing through QuickBooks and Slack chats to uncover the company’s financial position, as The Guardian reported.

The filing read: “Approximately 80,000 transactions were simply left as unprocessed accounting entries in catch-all QuickBooks accounts titled Ask My Accountant. Further complicating matters, QuickBooks entries were often made months after transactions occurred, rendering impossible real-time financial reporting and risk management.”

Reviving the FTX exchange will require significant capital and effort. Dietderich said that the customer interface was only weakly connected to the finances behind the scenes, stating: “the app worked beautifully, but in truth it was a facade.”

Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.

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