Coin Edition -
- A recent report states that FTX has initiated offloading its crypto assets in a bid to repay its customer funds.
- FTX has amassed $4.4 billion in cash by the end of December 2023.
- The platform is also conducting Bitcoin derivative trades to hedge exposure to the coin.
A recent Bloomberg report unveiled that the ruined crypto exchange, FTX, has been struggling to reimburse its customer funds following the debacle. As a resolution to amass money, FTX has begun offloading its crypto-related assets to pay back its customers.
Previously, in 2022, the crypto industry saw the massive fall of the crypto giant FTX, triggering a long crypto winter. While the platform owes billions of dollars to its customers, over the past months, FTX has been looking for ways to repay them.
In August 2023, FTX introduced a draft creditor-repayment plan, envisioning to settle its customer claims in cash. In addition, the firm has also shared its plans for restarting the FTX as FTX.com, making the company’s services available to international customers.
The Bloomberg report stated that FTX has been successful in accumulating $4.4 billion in cash pile by the end of December 2023, doubling from the $2.3 billion in October. In December alone, the platform raised about $1.8 billion by selling some of its assets.
According to the report, FTX has been conducting Bitcoin derivative trades to hedge exposure to the coin. The firm believes that such a move could add additional yield to its crypto holdings. Zerohedge, a prominent voice, commented on the matter, stating, “So FTX is the big futures shorter of bitcoin; would be ironic if a giant short squeeze puts FTX in Chapter 22″.
"FTX also said it’s conducting Bitcoin derivative trades to hedge exposure to the coin" So FTX is the big futures shorter of bitcoin; would be ironic if a giant short squeeze puts FTX in Chapter 22— zerohedge (@zerohedge) January 27, 2024
FTX stated that the platform doesn’t expect customers to be completely repaid. Also, there is a greater possibility for a higher percentage of losses for FTX.com customers.
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