FTX Debtors Reveal $5.5B in Liquid Assets Amid Bankruptcy

Bankrupt crypto derivatives exchange FTX and its U.S.-based subsidiary, FTX.US, announced Tuesday that they have a total of $5.5 billion worth of liquid assets amid bankruptcy.

On November 11, 2022, the disgraced FTX founder Sam Bankman-Fried (SBF) filed for Chapter 11 bankruptcy protection for three companies tied to him – FTX, FTX.US, and Alameda Research. 

Such bankruptcy filings enable a company struggling with its finances to reorganize itself while looking for ways to settle with its creditors. In FTX’s case, it collaborated with several advisory entities to recover its assets and provide adequate information to necessary authorities.

Financial Breakdown

In a meeting with the Official Committee of Unsecured Creditors (UCC), FTX’s top executives and advisors shared a presentation showing its asset recovery process with the agency. The presentation showed a breakdown of the total assets tied to FTX and FTX.US.

The FTX Debtors showed that the $5.5 billion liquid assets comprise $1.7 billion of cash, $3.5 billion of crypto assets, and $300,000 million of securities. Details relating to properties and assets held by the FTX Debtors were also shared.

For FTX, $426 million was revealed to be held by the Securities Commission of the Bahamas. Another $323 million was subjected to third-party transfers after the bankruptcy filing in November. The presentation also showed that $742 million was held by the FTX Debtors. This totaled approximately $1.6 billion.

For FTX.US, $90 million was subject to unauthorized third-party transfers. A total of $91 million was held under the custody of FTX Debtors. The total amount discovered from FTX.US amounted to $181 million.

SBF: FTX.US Was Fully Solvent Before Bankruptcy Filing

The presentation also revealed that the total assets held at both exchanges were “substantially less than the aggregate third-party customer balances suggested by the electronic ledger” at the time of bankruptcy filing.

This defies SBF’s statement, claiming last week that the U.S.-based exchange was fully solvent with a balance of $350 million. He claimed that the company’s assets under management (AUM) were larger than the entire customers’ balance.

The FTX boss added that he was forced by the company’s legal counsel, Sullivan & Cromwell LLP, to file for bankruptcy protection alongside FTX and Alameda.

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