A bankrupt crypto exchange FTX has a deficiency of $8.6 billion, while FTX US has a shortage of $116 million.
FTX, the bankrupt cryptocurrency exchange established by Sam Bankman-Fried and Gary Wang, has shared a presentation revealing a “massive shortfall” in its fiat currency and digital asset holdings.
According to the presentation shared on March 2nd, billions of dollars of FTX customers' funds have allegedly disappeared from the firm and its US subsidiary, FTX US.
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In a separate press release shared by the crypto exchange, FTX CEO and Chief Restructuring Officer John J. Ray III stated that it is the first presentation out of several the company is looking to launch as they “continue to uncover the facts of this situation.” Moreover, Ray III noted:
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. For these reasons, it is important to emphasize that this information is still preliminary and subject to change.
Despite that, the presentation revealed that the company once had $2.2 billion in wallets and fiat accounts. It is worth noting that 32% of those funds, or $694 million, were “Category A Assets,” which includes cash, Bitcoin (BTC) and Ether (ETH) priced at the latest spot prices and stablecoins.
Furthermore, wallets linked to the FTX US only had $191 million of the total asset. In addition, the presentation revealed that customers and related party receivables were worth $28 million and $155 million, respectively.
FTX data revealed that Alameda Research had a net borrowing of $9.3 billion. On the other hand, FTX US had a net payable to Alameda Research valued at around $107 million.
The presentation showed that the total deficiency across all FTX accounts and wallets is approximately $8.6 billion, with FTX US having a shortage of $116 million.
In other FTX-related news, its Japanese subsidiary FTX Japan has opened a withdrawal process. During the first 24 hours, investors withdrew around $50 million worth of assets from the exchange.