A press release describing a presentation submitted in FTX and FTX.US’s Chapter 11 cases on Thursday showed that the exchanges have a significant shortage of assets.
Despite Sam Bankman-Fried, the founder of FTX, saying on multiple occasions that FTX.US is “fully solvent,” findings by the debtor group show otherwise.
At the current spot prices, the total assets in FTX wallets are valued at $2.2 billion, of which only $694 million are highly liquid assets such as fiat, stablecoins, Bitcoin, and Ethereum.
Aside from the numerous claims against FTX’s sister firm Alameda Research and its linked parties, the firm also has $385 million in customer receivables. The presentation also revealed that Alameda had borrowed $9.3 billion from FTX.com accounts and wallets.
FTX.US also has only $191 million in total assets. This sum includes $28 million in client receivables and $155 million in related party receivables. In addition, FTX.US also owes Alameda Research $107 million in net payments.
According to attorney and current FTX CEO John J. Ray III, the assets of the exchanges were “highly commingled, and their books and records are incomplete and, in many cases, totally absent.”
For these reasons, Ray, who also acts as the debtor group’s chief restructuring officer, said it was critical to underline that the findings were still preliminary and liable to change.
The presentation also demonstrated that as of the petition date, the FTX team had found $7 billion in customer payables in cash and stablecoins, offset by $580 million in identified assets.
FTX has a deficit for Category A assets such as $BTC, $ETH, $SOL, $XRP, $BNB, $MATIC, $TRX and others. Yet, it accounts for surplus Category B tokens, including $MAPS, $SRM and $FIDA. However, the value of these token holdings is far from balancing its Category A liabilities.
The presentation also included an up-to-date valuation of the debtors’ liquid assets, which had increased from $5.5 billion to $6.1 billion since its previous report in January.
Besides the rise in value due to increased digital asset valuations, the company also recouped $202 million from Alameda, $125 million in stablecoins and $57 million in other cryptocurrencies.