Crypto exchange OKX has pledged to cooperate with the FTX bankruptcy team by returning over $157 million in frozen assets linked to FTX and its affiliated entities.
According to official reports, OKX confirmed the repatriation of $157 million in frozen funds to FTX’s bankruptcy administrators. The announcement did not specify the types of assets involved.
OKX’s Collaboration With FTX Bankruptcy Proceedings
Following the collapse of FTX, OKX initiated an internal review to identify any FTX-related assets under its custody. The investigation revealed funds connected to accounts controlled by Alameda Research LLC and a former FTX employee.
A court filing from the ex-employee stated:
“From the date the OKX Account was opened through on or about Nov. 10, 2022, the OKX Account, to the best of my knowledge, information, and belief, was controlled and used by Alameda Research LLC and/or its subsidiaries.”
OKX emphasized its commitment to assisting FTX’s debtors and law enforcement, aiming to redistribute the recovered assets to affected users via bankruptcy proceedings.
The FTX restructuring team, led by CEO John Ray III, continues to reclaim lost funds. Recently, they recovered $404 million from Modulo, a Bahamas-based hedge fund.
👉 Learn more about OKX’s compliance efforts
Frequently Asked Questions (FAQs)
1. Why is OKX returning these funds?
OKX is adhering to legal and regulatory requirements by cooperating with the FTX bankruptcy team to return misallocated assets to creditors and users.
2. What types of assets are being returned?
Specific asset details remain undisclosed, but the $157 million includes funds tied to Alameda Research and former FTX employees.
3. How will the returned funds impact FTX users?
Recovered assets will be integrated into FTX’s bankruptcy estate, potentially increasing repayments to creditors.
👉 Explore OKX’s transparency initiatives
Key Takeaways
- Cooperation: OKX proactively identified and repatriated frozen FTX-linked assets.
- Legal Compliance: The exchange aligns with bankruptcy proceedings to support affected users.
- Ongoing Recovery: FTX’s team has reclaimed over $561 million ($404M + $157M) in recent weeks.
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