Bankruptcy Lawyers State That FTX Has A Significant Deficit In Assets
Of the wallets associated with FTX.com, $2.2 billion in assets have been detected, but only $694 million are in the most easily convertible assets.
Valentin
March 13, 2023
CoinDesk reported that according to a press release outlining a presentation filed in FTX.com’s Chapter 11 case on Thursday, the crypto exchange is facing a substantial asset shortfall. As per current spot prices, the wallets associated with FTX.com have been found to contain $2.2 billion worth of assets, out of which only $694 million comprise the most readily tradable “Category A Assets” like fiat, stablecoins, Bitcoin or Ether.
Apart from this, there are also $385 million in customer receivables and significant claims against FTX’s sister company Alameda Research and associated parties. The presentation further reveals that Alameda has borrowed a net of $9.3 billion from FTX.com wallets and accounts.
FTX US has also been found to have an asset deficit, with a total of $191 million in assets located in the wallets of associated accounts, along with $28 million in customer receivables and $155 million in receivables from related parties. Furthermore, FTX US owes a net of $107 million to Alameda Research.
Source: https://downloads.coindesk.com/legal/FTX_Bankruptcy_Hearing.pdf
John J. Ray III, the CEO and chief restructuring officer of FTX Debtors, stated in the press release that the exchange’s assets were highly mixed, and their books and records were either incomplete or completely absent. He also noted that the information presented was preliminary and subject to change.
As per the presentation, FTX’s team identified $7 billion in customer payables in cash and stablecoins, offset by $580 million in identified assets as of its petition date.
FTX has a shortfall for every token categorized as a Category A asset, including bitcoin, ether, sol, XRP, BNB, matic, tron, and others. However, Category B tokens such as MAPS, serum, and fida are being treated as having surpluses. Nevertheless, the value of these token holdings does not come close to offsetting Category A liabilities.
You can view the whole document here.
Although FTX US did report some surpluses in certain tokens like DOGE on the date of its petition, these were mostly in small amounts and were insufficient to offset the deficits from its stablecoin, ether, and sol payables.