FTX debtors release update on exchange’s shortfalls magnitude

FTX Debtors have released a fresh presentation updating stakeholders on the magnitude of shortfalls in the bank accounts and crypto wallets connected to Sam Bankman-Fried’s FTX and FTX US exchanges. 

As part of its ongoing Chapter 11 bankruptcy case, FTX Trading Ltd. and its affiliated debtors have met with the Official Committee of Unsecured Creditors (UCC). They have released a presentation detailing the shortfalls in the fiat bank accounts and cryptocurrency wallets of FTX.com and FTX US.

Per the presentation, a total of $2.2 billion worth of assets have been found in the FTX.com exchange wallets as of March 2, of which just $694 million are the most liquid currencies like bitcoin (BTC), ether, fiat, and stablecoins, 

FTX Debtors have also discovered $385 million worth of customer receivables and $9.3 billion net borrowing by FTX’s sister company Alameda Research LLC.

Commenting on the matter, FTX CEO and chief restructuring officer, John Jay Ray III said:

“The exchanges’ assets were highly commingled, and their books and records are incomplete and, in many cases, totally absent. For these reasons, it is important to emphasize that this information is still preliminary and subject to change. We believe it is more important to provide transparency to stakeholders by publicising this information now than to wait until we can achieve certainty.”

$191 million found in FTX US wallets 

In the same vein, contrary to Sam Bankman-Fried’s claims, FTX Debtors revealed in the presentation that a total of $191 million worth of assets was located in FTX US wallets, plus $28 million of customer receivables, and $155 million of related party receivables. 

“This compares to $335 million of customer claims and $283 million of related party claims payable. The presentation shows a $107 million net payable by FTX US to Alameda Research LLC. 

In all, the total amount of liquid assets under the control of the FTX Debtors group increased from the $5.5 billion reported last Jan. to $6.1 billion due to an increase in the spot market price of bitcoin and other cryptos coupled with the “newly located digital assets including 202 million worth of crypto assets held at Alameda, $125 million of stablecoin; and $57 million of crypto held at subsidiaries,” the group noted.

While the disgraced Bankman-Fried has continued to deny any wrongdoing that may have resulted in the collapse of the FTX empire, the US Securities and Exchange Commission (SEC) has charged Nishad Singh, the exchange’s former co-lead engineer, for fraud.