FTX is selling cryptocurrency assets and hoarding cash as bankruptcy advisers search for a way to repay customers whose accounts have been frozen since the platform collapsed in 2022.

According to monthly operating reports under Chapter 11 of US bankruptcy law, FTX's four largest subsidiaries, including FTX Trading Ltd. and Alameda Research LLC, almost doubled their cash reserves by the end of 2023, increasing from about $2.3 billion at the end of October to $4.4 billion. The company's total cash balance may be even higher when other subsidiaries are included.

Last month, the company said in a court filing that it had raised $1.8 billion by selling some of its digital assets as of December 8. FTX also said it was trading bitcoin derivatives to hedge against bitcoin risk and generate additional income from its digital assets, while exploring the possibility of restarting its exchange. (Bloomberg)