• FTX only had $694 million in liquid assets and a massive net deficit of $8.6 billion.
• Alameda Research borrowed around $9.3 billion from customer accounts.
• John J. Ray III said books and records are incomplete or totally absent.
FTX Reveals Massive Shortfall in Crypto and Fiat Holdings
FTX has revealed a „massive shortfall“ in crypto and fiat currency holdings, with billions in customer funds missing from both FTX and its US subsidiary FTX US. According to the exchange’s balance sheet, there is a net deficit of $8.6 billion, likely due to unchecked borrowing by its sister trading firm Alameda Research. Documents also show that FTX only had $694 million in liquid assets, out of the total $2.2 billion held in exchange wallets and fiat accounts.
Incomplete Books And Records
John J. Ray III, chief restructuring officer and CEO of FTX, has stated that the books and records for both FTX and Alameda Research are incomplete or totally absent due to poor record-keeping practices by prior management. This lack of proper documentation further complicates the process of recovering customer funds lost as a result of this shortfall.
Ties To Wall Street And Prominent Ex-Backers
The collapse of FTX rocked the crypto space to its core, taking several major crypto firms with it including those with ties to Wall Street such as Anthony Scaramucci’s SkyBridge Capital which previously backed Sam Bankman-Fried’s crypto empire before his downfall earlier this year.
Why It Matters: Maximizing Funds For Former Customers
A transparent bankruptcy proceeding is essential for former customers hoping to recover their lost funds from this shortfall situation – which is why it’s important to uncover the facts surrounding this matter quickly and accurately so that everyone involved can be given a fair chance at justice moving forward.
More Reading: Sam Bankman-Fried: Crypto’s Fallen Hero?
For more information on Sam Bankman-Fried’s story, please read our deep dive article into his rise from Wall Street tycoon turned crypto mogul here: Sam Bankman-Fried: Crypto’s Fallen Hero?