The liabilities on FTX's balance sheet total $9 billion.
SBF returns to Twitter with a mysterious tweet.
The FTX group tokens FTT, SOL, and SRM plummeted drastically.
A lot has transpired. A significant reduction in FTX's crypto assets and unlawful withdrawals shows that customers have very little odds of recovering their funds.
Following the bankruptcy filing with the US Securities and Exchange Commission, FTX's former CEO Sam Bankman-Fried disclosed the company's balance sheet to investors. The company has enormous liabilities of $9 billion and liquid assets of less than $900 million.
As per sources acquainted with the matter, FTX has $5.5 billion in "less liquid" assets and $3.2 billion in "illiquid" assets. Some of the exchange's largest assets include cryptocurrencies such as Serum, Solana, and FTT, the value of which has plummeted since the FTX crisis erupted.
As if that wasn't enough, a blockchain analytics firm discovered $477 million in illicit withdrawals from FTX within 24 hours of its bankruptcy filings. As per rumours, FTX employees are responsible for the matter.
FTX's balance sheet also shows a negative $8 billion fiat currency account that is "hidden, inadequately internally designated." Furthermore, it shows $5 billion in withdrawals last Sunday, precisely as Binance announced the first withdrawal of its FTX tokens. The accompanying note states:
“There are numerous things I wish I could do better, but the two most significant are the poorly labelled internal bank-related account and the magnitude of consumer withdrawals during a bank run.”
One of the sources further stated that the balance sheet is erratic and not granular.
FTX's Balance Sheet Assets
Serum tokens, or SRM, valued at $2.2 billion, are among the largest assets held by FTX. The serum is an FTX-built liquidity infrastructure hub that is used by market makers and lending procedures on Solana. The SRM price has dropped nearly 40% in the last four days. Developers are also attempting to separate the project in order to reduce their exposure to FTX.
Solana was one of FTX's trading firm Alameda Research's other major holdings. The balance sheet indicates SOL holdings of $982 million. According to previous allegations, Alameda was selling Solana (SOL) in large amounts and using the money to acquire FTX to prevent its crash.
FTX also holds $616 million in MAPS tokens, the price of which has dropped by 25% in the last two days. They also have $554 million in FTT tokens, which have dropped by more than 50% in the last two days. In addition, FTX holds $472 million in Robinhood Shares.
What do you think will FTX users receive their funds safely? Share your views in the comment section below.
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