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FTX Update | Assets of Nine Billion USD Before Bankruptcy, Debt of Ninety Billion USD; New CEO Says Working with Law Enforcement

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FTX Update | Assets of Nine Billion USD Before Bankruptcy, Debt of Ninety Billion USD; New CEO Says Working with Law Enforcement

Following the FTX incident, there have been continuous updates since the early hours of 11/13. Here is a summary:

FTX is collaborating with law enforcement

FTX's legal advisor Ryne Miller tweeted referencing a statement from FTX's current CEO John Ray, outlining three key points:

  1. FTX will continue to protect all assets to the best of its ability under Chapter 11 bankruptcy obligations, regardless of where the assets are located.

  2. Trading and withdrawal functions are being disabled, and all assets are being transferred to new cold wallet custody as much as possible, as unauthorized trading has been reported.

  3. Immediate reviews have been initiated to minimize damage and FTX is in continuous contact with law enforcement and relevant regulatory authorities regarding the unauthorized trading incidents.

FTX had only $9 billion in assets the day before bankruptcy, with $90 billion in liabilities

Financial Times claims to have obtained documents shared by potential investors before the bankruptcy, revealing liabilities amounting to $90 billion with only $9 billion in highly liquid assets, with the highest portion being $470 million in Robinhood stock.

The documents also indicate that FTX's parent company has $89 billion in liabilities, including a $51 billion deficit.

Financial Times reporter Kadhim released FTX's balance sheet as of 11/10 on Twitter in the early morning, including many illiquid assets:

  • SRM: $21 billion
  • SOL: $9.8 billion
  • MAPS: $6.16 billion
  • OXY: $3.12 billion

According to CoinMarketCap, SRM has a market value of only about $80 million, with a fully diluted valuation of approximately $32 billion, of which FTX and Alameda collectively hold two-thirds of the market value.

Following the release of the balance sheet, some in the community have begun to understand why Binance initially declined the acquisition.

Financial Times alleges that SBF informed them that the funding gap unexpectedly extended to Alameda Research, but declined to comment further.

FTX spent $74 million on real estate in the Bahamas this year

According to documents obtained by The Block, FTX Property Holdings spent a total of $74.23 million on real estate in the Bahamas this year, with $67.44 million used to purchase luxury apartments within a resort on New Providence Island.

Where is SBF?

Many Twitter accounts claim that SBF has flown to Argentina, but Reuters stated that when asked for confirmation, SBF denied this and stated that he is still in the Bahamas.

There are also rumors circulating in the crypto community that SBF and his father are being detained by authorities, but this has yet to be confirmed.

Cointelegraph cited sources indicating that SBF, Chief Engineer Nishad Singh, FTX CTO Gary Wang, and others have been detained by Bahamian authorities.