Sam Bankman Fried, founder of FTX, has of course been in the news a lot lately. It emerged that Bankman Fried’s empire had a $6.8 billion deficit on its balance sheet when it filed for bankruptcy. This is evident from a presentation by advisers to Sam Bankman-Fried. It also appeared earlier that FTX has a shocking billions deficit, but this has now been confirmed again by advisers of the now infamous Sam Bankman-Fried.
Significant shortfalls for FTX
The $6.8 billion shortfall not only applied to FTX, but also other Sam Bankman-Fried companies. For example, FTX.com had debts of no less than $10.6 billion, while FTX.US had debts of $87 million. The only two companies that performed relatively well compared to the others were sister company Alameda Research, with a net worth of $2.6 billion, and FTX Ventures, with a net worth of $1.3 billion.
Debt of $11.6 billion versus assets of $4.8 billion
The total deficit of Bankman Fried’s group of companies was $11.6 billion, most of which was accounted for by customer receivables. These debts were offset by only $4.8 billion in assets. Clearly a lot went wrong here. That is also the reason why Sam Bankman-Fried was also arrested on suspicion of fraud, among other things.
Uncontrolled statements in the presentation
It must be said that the statements made in the presentation have not been verified by any external party auditors and are subject to change. Nevertheless, it once again confirms that the overall deficit of Sam Bankman-Fried’s FTX empire was nothing short of staggering.
All this not only causes problems for FTX, and of course customers of FTX, but also problems for famous cyrpto influencers who have promoted FTX. It now remains to be seen what the next steps will be to manage the bankruptcy of FTX.