All articles tagged with #asset recovery
After Evergrande's default, $255 million worth of assets, including artworks by Monet, have been recovered, highlighting the scale of the financial crisis and asset liquidation.
FTX Trading Ltd. and its affiliated debtors, known as FTX Debtors, have announced a proposed settlement of customer property disputes in their pending chapter 11 cases. The settlement, called the Customer Shortfall Settlement, will be part of an amended Plan of Reorganization to be filed by the FTX Debtors in December 2023. If approved, the settlement would resolve customer property litigation and allow customers to receive over 90% of the distributable value worldwide. The Amended Plan also includes an offer to settle FTX.com and FTX US preferences at specified amounts. The settlement was reached after extensive negotiations among the FTX Debtors, customer representatives, and creditors.
Former Goldman Sachs executive Roger Ng Chong Hwa, convicted in the US for his involvement in the multibillion-dollar looting of Malaysia's 1MDB fund, has been brought back to Malaysia to assist in asset recovery efforts. Ng, who denies the charges against him, is under police custody and faces graft charges in Malaysia. The government seeks to review a settlement package with Goldman Sachs, considering it too lenient. The 1MDB scandal led to the downfall of the Malaysian government, with former Prime Minister Najib Razak currently serving a 12-year jail term. Malaysian financier Low Taek Jho, the alleged mastermind, remains a fugitive.
FTX, the bankrupt crypto exchange, has filed a lawsuit against former employees of its Hong Kong affiliate, Salameda, seeking to recover approximately $157.3 million. The filing alleges that the defendants fraudulently withdrew assets from FTX accounts leading up to the exchange's bankruptcy filing. FTX's bankruptcy estate has previously attempted to reclaim payments from related parties, including FTX's ex-CEO, Sam Bankman-Fried, and Genesis Global Capital. The filing also claims that the defendants exploited their connections to FTX personnel to prioritize their withdrawals over other customers. Bankman-Fried, who is currently in jail, is scheduled to go on trial on October 3.
FTX has recovered $7 billion in liquid assets so far, but there is still almost $2 billion to go to cover the misappropriation of customer assets, according to the FTX Debtors’ second interim report. The report alleges that former FTX leadership intentionally commingled and misused customer deposits, making it challenging to trace substantial assets to any particular source of funding. Misappropriated funds were used for political and charitable donations, as well as the company’s investments and acquisitions, such as luxury real estate.