FTX reports $415 million in hacked crypto, Bankman-Fried says FTX U.S. is solvent

FTX has said it had recovered over $5 billion in crypto, cash and liquid securities, but that significant shortfalls remained at both its international and U.S. crypto exchanges

Bankrupt crypto exchange FTX said in a report to creditors on January 17 that about $415 million in cryptocurrency had been stolen in hacks.

FTX has said it had recovered over $5 billion in crypto, cash and liquid securities, but that significant shortfalls remained at both its international and U.S. crypto exchanges. FTX attributed some of the shortfall to hacks, saying that $323 million in crypto had been hacked from FTX's international exchange and $90 million had been hacked from its U.S. exchange since it filed for bankruptcy on Nov. 11.

Indicted founder Sam Bankman-Fried later challenged aspects of the company's report in a blog post.

Mr. Bankman-Fried, who has been accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund, Alameda Research, pushed back against FTX's calculations late Tuesday, saying that the company's lawyers at Sullivan & Cromwell had presented an "extremely misleading" picture of the company's finances.

Mr. Bankman-Fried said FTX has more than enough money to repay U.S. customers, whom he says are owed between $181 million and $497 million based on his "best guess." Bankman-Fried has not had access to FTX records since stepping down as CEO in November.

A spokesperson for Sullivan and Cromwell declined to comment. Attorneys at the firm said in a recent court filing that they have rebuffed Bankman-Fried's efforts to stay involved in the company's bankruptcy proceedings.

Mr. Bankman-Fried has pleaded not guilty to fraud charges, and he is scheduled to face trial in October.