You may have noticed that Sam Bankman-Fried’s FTX had to file for bankruptcy in November 2022. At the time, it emerged that the crypto exchange did not handle the assets of its customers very neatly and even ‘gambled away’ them via Alameda Research, which is affiliated with FTX. Now it turns out one recent presentation of the company that billions of dollars in assets are missing.
FTX has lost billions of dollars
The figures in the presentation show that FTX still owns $ 2.155 billion in assets, while it owes its customers a total of $ 11.233 billion. A very small windfall is that it still has $ 385 million in assets from a small group of customers.
That does not alter the fact that there is a huge shortage. For so-called “Category A assets” alone, there is a deficit of $9.466 billion. Assets in category A include cash (dollars), stablecoins, bitcoin (BTC) and ethereum (ETH).
Deputy CEO John J. Ray III, who is trying to manage the bankruptcy, indicates that it is a second presentation in a “series” as they stubbornly continue to sift through the situation.
From bad to worse
The more information comes out about FTX, the worse things seem to get for the exchange platform. Not long ago it seemed that FTX had much more capital than expected. However, based on these figures, nothing remains of that. A shortfall of nearly USD 10 billion does not bode well for creditors and users of the exchange platform.
The chance seems very small that they will still have a significant sum of money left over from the problems at FTX. If anything is left over, it may also take years before these people see anything of it again. We got that from Mt. Gox, the crypto exchange that went bankrupt in 2014, whose repayments have still not started. Meanwhile, Silvergate Capital is also on the brink of collapse.