FTX Has ‘Massive Shortfall’ in Assets, Say Bankruptcy Lawyers
FTX.com has a “massive shortfall” in assets, according to a press release detailing a presentation that will be filed in the bankrupt crypto exchange’s chapter 11 case on Thursday.
Using the latest spot prices, $2.2 billion of total assets have been identified in the wallets of the accounts associated with FTX.com, of which only $694 million constitute the most liquid “Category A Assets” that include fiat, stablecoin, bitcoin or ether.
Other assets include $385 million of customer receivables, and significant claims against FTX sister company Alameda Research and related parties. The presentation also shows a $9.3 billion net borrowing by Alameda from the FTX.com wallets and accounts.
FTX.US also showed a shortfall in assets, with $191 million of total assets located in the wallets of accounts associated with the exchange, as well as $28 million in customer receivevalbes and $155 million of related party receivables. There is also $107 million net payable by FTX.US to Alameda Research.
“The exchanges' assets were highly commingled, and their books and records are incomplete and, in many cases, totally absent,” wrote John J. Ray III, the CEO and chief restructuring officer of the FTX Debtors, in the press release. “For these reasons, it is important to emphasize that this information is still preliminary and subject to change.”