- FTX has a $9.5 billion shortfall in top crypto and cash to pay customers, bankruptcy lawyers say.
- The $694 million in assets of $2.2 billion that were just acquired can be easily cashed out.
- The group said it also loaned $9.3 billion to Sam Bankman-Fried’s Alameda Research.
FTX has identified a $9.5 billion shortfall in the primary crypto and currency needed to pay customers, its new bosses said, with $694 million in cash readily available.
In a press release Thursday, FTX shared the extent of the company’s deficit as bankruptcy attorneys scramble to resolve a mess that has led to the loss of billions of dollars worth of customer funds.
The new executives of the bankrupt crypto exchange identified $2.2 billion in assets in the company’s wallets, of which only $694 million was in the most liquid currencies, such as fiat, stablecoins, bitcoin, or ethereum.
The lawyers also identified $385 million in customer receivables, and several claims against Bankman-Fried’s Alameda Research, the company at the center of the controversial FTX collapse. FTX loaned $9.3 billion to Alameda, they said.
“It took a huge effort to get there. The assets of the exchanges are extremely mixed, and their books and records are incomplete and, in many cases, completely non-existent,” wrote CEO John Ray.
“For these reasons, it is important to emphasize that this information is still preliminary and subject to change.”
FTX US also had a deficit, with $191 million in assets compared to $335 million in customer claims and $283 million in related party claims payable.
In January, bankruptcy attorneys said they had recovered $5.5 billion in liquid assets from FTX.
But lawyers still don’t know the extent of the loss of customer funds, which has burned famous faces like Tom Brady and Kevin O’Leary. The Commodities and Futures Trading Commission (CFTC) estimated that $8 billion of client money was lost on the exchange.
Its latest presentation suggests there is a $9.5 billion deficit in most of its liquid assets, and a $733 million surplus in category B assets – those that are harder to get hold of – including through the FTX native coin FTT .
It was reported in November that FTX could have a million creditors.