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FTX publishes balance sheet: owe customers over $1.5B in BTC
Bankrupt crypto exchange FTX on the 2nd of March published its balance sheet with some shocking revelations. In the publication, the bankrupt crypto firm revealed that they owed customers over $1.6 billion worth of Bitcoin, while in reality, there was only $1 million available.
Estimates found by liquidators also showed that the firm also had incurred costs worth $3.5b in ‘liquid’ coins, had over $1.7b cash, and over $800m in ‘illiquid’ coins which may be worth nothing today. The firm had over $500m in FTT (the exchange’s native token) which isn’t worth much today either. The firm also incurred about $4.5b in book value venture investments, as well as $11.5b in customer liabilities.
The FTX balance sheet is really something
$1.6 billion worth of Bitcoin owed to customers, with only $1m there in reality
Rough NFA breakdown of what liquidators have found so far across all silos
-$3.5b in 'liquid' coins
-$1.7b cash
-$800m 'illiquid' https://t.co/dDthjFWDvF… https://t.co/rvaFd0A78i pic.twitter.com/qckkb2yc02— db (@tier10k) March 7, 2023
Some of the key takeaways from the published balance sheet showed that The FTX Debtors Group has identified and inventoried substantial digital assets in all wallets associated with FTX.COM and FTX.US exchanges. Both exchanges generally held digital assets in sweep wallets which were not segregated for individual customers.
FTX’s pre-petition management used the FTX.COM and FTX.US sweep wallets to store, borrow and lend digital assets for the proprietary account of affiliated debtors, collectively known as the FTX Debtors Group, and a large number of related parties, including employees, suppliers, vendors, and business partners, as well as exchange customers.
The publication also showed that there was a huge shortfall at the FTX.COM exchange, which was defined as the difference between digital asset claims on the ledger of FTX.COM and digital assets available to satisfy those claims. The shortfall is especially pronounced for what is described as Category A Assets, which are the most popular crypto assets and stablecoins. Only a small amount of cash, stablecoin, BTC, ETH, and other Category A Assets remain in wallets sourced to the FTX.COM exchange.
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