The Blubber

Per CNBC

While the trial of FTX founder Sam Bankman-Fried is yet to start, a Delaware Bankrupt judge reported $5 billion total in liquid assets. New CEO John J. Ray said that customer assets of at least $8 billion remained unaccounted for.

To be clear, FTX attorney Adam Landis told the court that the $5 billion figure didn't include any crypto assets considered illiquid. The attorney argued that selling them would substantially affect the market due to the size of the now-bankrupt crypto exchange's holdings.

Landis mentioned that the sale of the holdings would result in its value dropping significantly. The news comes shortly after the possible seizing of FTX-connected assets worth $500 million, per CoinDesk.

Despite finding $5 billion in liquid assets, the news of SBF's major spending attracted a lot of eyes. The topics of spending include the former FTX CEO's habit of frequently spending $2,500 on a lunch for himself and his staff, with a total spent on hotels, airfare, and food at $40 million in nine months.

While the case against SBF is being built leading toward his trial, a third associate, Nishad Singh, FTX engineering chief, is looking to cooperate with US prosecutors for a deal despite receiving no charges yet. This contrasts with Caroline Ellison, ex-girlfriend and Alameda CEO, and Gary Wang, the co-founder of the crypto exchange, pleading guilty to charges against them and are now working with authorities.

The $5 billion in liquid assets that were found, if sold, could potentially help repay customers who lost billions to FTX. Andrew Dietrich, another attorney for the now-bankrupt crypto exchange, said that company advisers could find crypto that would be hard to sell without majorly affecting those digital tokens' market price.

Dietrich highlighted that they are trying to sell assets with a book value of $4.6 billion, classified as "nonstrategic investments," per the WP.

See flow at unusualwhales.com/flow.

Other News:

• Filing Reveals FTX Spent $7M on Food in 9 Months: $40M Spent In Total for Hotels, Foods, and Travel
• FTX's Nishad Singh Looks for Cooperation Deal with US Prosecutors Despite Not Yet Receiving Charges

Resources:

CNBC

CoinDesk

The Washington Post