FTX stakeholder report shows 'massive shortfall' of assets

Quick Take

  • FTX said $2.2 billion of digital assets have been located in accounts associated with FTX.com, of which only $694 million are high-quality “liquid assets.”
  •  It is not possible to calculate or predict customer recoveries based on the presentation, a report from the company said.

It's still not possible to accurately calculate or predict customer recoveries at this time, FTX CEO John Ray III said in a new presentation filed Thursday in the failed crypto exhange's ongoing bankruptcy proceedings.

The presentation confirmed a “massive shortfall” in assets for FTX and its corporate family.

Using spot prices as of March 1, more than $2.2 billion in total crypto assets have been located in wallets associated with FTX.com. Of this amount, only $694 million of these funds are liquid “Category A Assets,” which include fiat, stablecoins, bitcoin and 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 $9.3 billion borrowed by Alameda from the FTX.com wallets and accounts.

FTX.US also reported an asset shortfall, with $191 million of total assets identified in wallets associated with the exchange, as well as $28 million in customer receivables and $155 million receivables from related parties. Alameda Research owes the American exchange $107 million.

“The exchanges' assets were highly commingled, and their books and records are incomplete and, in many cases, totally absent,” wrote John J. Ray III, who is also chief restructuring officer of the FTX Debtors. “For these reasons, it is important to emphasize that this information is still preliminary and subject to change.”

According to the presentation, which builds on information released Jan. 17, FTX team of stakeholders identified $7 billion in customer payables in cash and stablecoins, with $580 million in assets to offset the amount owing.

The digital assets identified in this presentation exceeded the amount previously cited by $384 million. 

The presentation also states that customer assets were stored in sweep wallets that weren't segregated for individual customers. 

The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.


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