FTX presentation shows ‘massive shortfall’ in firm’s assets

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Bankrupt cryptocurrency exchange FTX has a “substantial shortage” of digital assets and fiat holdings, with billions of dollars worth of customer funds missing from both the exchange and US-based FTX US. made it clear that

On March 2nd, the exchange will presentation FTX has $2.2 billion in exchange wallets and fiat accounts, of which $694 million is the most liquid “Category A”, including cash, stablecoins, Bitcoin (BTC) and Ether (ETH). Assets” and priced at the latest spot price.

In addition to $28 million in customer receivables and $155 million in related party receivables, FTX US accounts have only $191 million in total assets in wallets.

FTX wallet and account balances at bankruptcy show an $8.6 billion deficit. sauce: FTX

FTX Wallet showed $9.3 billion in net borrowings by the exchange’s sister trading company, Alameda Research, and $107 million in net payments from FTX US to Alameda.

FTX has posted surpluses across illiquid “Category B assets”, including its own FTX token (FTT), but holdings are insignificant compared to deficits in other holdings.

In total, FTX posted a loss of $8.6 billion across all wallets and accounts, while FTX US posted a loss of $116 million.

RELATED: FTX Japan Allows Full Withdrawal of Funds-Users Rejoice in ‘Escape’

FTX Chief Restructuring Officer and CEO John J. Ray III said on March 2: statement This presentation is the second in a “series” to “get the facts out of this situation,” adding:

“It took a lot of effort to get to this point. The assets on the exchange were so mixed up, the books and records were incomplete, and in many cases non-existent at all.”

On February 28, former FTX Engineering Director Nishad Singh pleaded guilty to conspiracy to commit wire fraud and merchandise fraud.

Singh’s plea follows that many of Bankman-Fried’s closest associates have reportedly agreed to cooperate with US prosecutors in recent months.