FTX, once one of the world's largest cryptocurrency exchanges, has recently gone through a shocking implosion in November, with the CEO and founder Sam Bankman-Fried facing charges of fraud and money laundering. The company has filed for bankruptcy protection and the extent of customer losses is still unclear. look at my previous article to find out more about this.

However, the company has recovered more than $5 billion in cash, easily sellable digital assets, and other liquid holdings thus far, according to an attorney for FTX in a Delaware bankruptcy court. Additionally, FTX is also working to liquidate another $4.6 billion in less convertible assets by "book value," though it is uncertain how much of that book value the company will be able to recover when selling the assets.

On the surface, it may appear that FTX's creditors have scored a significant win with the amount the company's new leadership has recovered to date. However, it is still not clear how much of a shortfall FTX's creditors will face as the company's advisers continue working to salvage what they can from the crypto giant's implosion. Federal regulators have estimated that FTX customer losses exceed $8 billion, which is a significant amount.

It is also important to note that FTX's recovery efforts are being hindered by legal and regulatory issues. The company's founder, Sam Bankman-Fried, is facing federal criminal charges related to alleged fraud at FTX and his hedge fund, Alameda Research. Prosecutors have accused him of orchestrating a years-long scheme to defraud the company's customers by diverting their deposits to his affiliated investment firm and then using the funds as a personal piggy bank.

Given the serious nature of the charges against Bankman-Fried, many investors and customers may question the credibility of the company and the integrity of its leadership. Additionally, different authorities are already competing to lay claim to FTX's holdings, which further complicates the situation for the company and its creditors.

Overall, it is clear that FTX's recovery efforts are still in the early stages and the extent of customer losses is still unclear. While it is good news that the company has been able to recover a significant amount of assets, it remains to be seen how much of those assets will actually be made available to customers to compensate for their losses. Given the circumstances and the criminal charges against the founder, it is hard to have confidence that the company will be able to fully recover the losses suffered by the customers.

In the end, while some creditors may see more than the typical five cents on the dollar recovery, it will be dependent on the actual assets and the recovery efforts of the company, and that may not be enough for many of the people affected.