- The shortfalls affect fiat bank accounts as well as digital asset wallets
- Total assets in FTX accounts are $2.2 billion; less than $700 million of that is liquid assets
FTX Trading Ltd. and debtors shared a presentation with the Official Committee of Unsecured Creditors (the “UCC”) in their bankruptcy cases, which reveals the true extent of fund shortfalls for the first time, Bankless Times learned from a press release. The shortfalls affect fiat bank accounts as well as digital asset wallets.
Comingling assets
The presentation provides information about how FTX’s previous management comingled assets, using FTX and its US subsidiary to lend, hold, and borrow digital funds for the benefit of related persons. Those included suppliers, employees, business partners, and vendors, among others.
Total assets are $2.2B – in theory
The total assets in FTX accounts amount to $2.2 billion, but less than $700 million of that is comprised of liquid assets like fiat money, Bitcoin, Ethereum, and stablecoins.
Receivables and claims to Alameda Research amount to $385 million. Alameda borrowed $9.3 billion net from FTX.com accounts and wallets at the time the petition was filed.
Startling shortfall at US subsidiary as well
The presentation also revealed serious losses at FTX.US. FTX.US account wallets currently hold assets worth $191 million in addition to $155 million in receivables from related parties and $28 million of customer receivables.
Related party claims that are payable amount to $283 million, and customer claims are slightly higher at $335 million.
John J. Ray III, the Chief Restructuring Officer and CEO of the FTX Debtors, commented:
This is the second in what the FTX Debtors anticipate will be a series of presentations as we continue to uncover the facts of this situation. It has taken a huge effort to get this far. The exchanges’ assets were highly commingled, and their books and records are incomplete and, in many cases, totally absent.
