FTX's Asset Hole Shrinks to 'Just' $6.8B
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FTX's Asset Hole Shrinks to 'Just' $6.8B

Created 6mo ago, last updated 6mo ago

In its latest financial statement, the bankrupt exchange's new managers cited $11.6 billion in claims and just $4.8 billion assets.

FTX's Asset Hole Shrinks to 'Just' $6.8B

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In its latest filing, the new management of Sam Bankman-Fried's FTX group of companies revealed a $6.8 billion shortfall.

So far, they have found $11.6 billion in claims against $4.8 billion assets in the chaotic and incomplete books of the bankrupt firms.

Which, as bad as it sounds, is a lot better than the $9.8 billion imbalance between assets and what it owes customers that FTX Debtors — as the entire collection of more than 100 companies is now called — revealed on March 2.

And better than initial estimates that some $8 billion was missing.

The ongoing fluctuation in the assets and liabilities of the FTX exchange and trading firm Alameda Research is a result of what restructuring expert and current CEO John Ray III called "a complete absence of trustworthy financial information." On March 2, he said:
"The exchanges' assets were highly commingled, and their books and records are incomplete and, in many cases, totally absent."

This is a multi-billion company that was run on QuickBooks, Ray III said when he took over.

Still Unclear

That said, the value of those assets is not really clear, as the majority — $3.5 billion of it — is investments made by Alameda and venture investments by Bankman-Fried.

On the other hand, the hard assets — cash and cash equivalents — have grown from less than $70 million to $900 million.

As for the claims, FTX customers are owed $11.568 billion, with a big question mark of unsecured liabilities. Just the 50 biggest creditors are owed $3.1 billion.
Which is an interesting number as FTX Debtors revealed on Tuesday that Bankman-Fried paid himself and five top aides $3.2 billion — $2.2 billion of which went to him personally.
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