FTX, a crypto firm that has faced a collapse and frozen customer accounts, is taking steps to raise cash in order to reimburse its customers. In light of the situation, the company’s largest affiliates, including FTX Trading Ltd. and Alameda Research LLC, have increased their cash reserves by nearly doubling the group’s cash pile to $4.4 billion at the end of 2023, up from about $2.3 billion in late October.
The company is reported to be unloading its crypto assets and accumulating cash as part of its efforts to address the fallout from the platform’s collapse. Bankruptcy advisers are actively seeking ways to repay customers who have been affected by the firm’s situation.
This move comes following concerns about fraud and the freezing of customer accounts linked to the collapse of the platform. By building up their cash reserves and unloading cryptoassets, FTX aims to address its financial obligations towards customers.
The situation with FTX underscores the volatility and risks associated with the crypto industry, and serves as a reminder of the importance of ensuring the security and stability of platforms in this sector.
This development may also impact the wider crypto market, as it adds to the ongoing discussions around regulation and security in the industry. It remains to be seen how FTX’s actions will unfold in the coming months, and how they will affect the broader crypto landscape.