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FTX creditors discover BRL 45 billion financial hole in the brokerage



A concerted effort to identify the remaining assets of bankrupt cryptocurrency exchange FTX has revealed “the size of deficiencies discovered in the bank accounts and digital wallets” of the group, according to a presentation made by creditors of the company in bankruptcy on Thursday (2). ).

In total, according to the Wall Street Journal, $2.7 billion in client assets were identified, compared to $11.6 billion in outstanding balances. This shows a shortfall of US$8.9 billion – around R$45 billion – in funds from clients that cannot be identified.

This is the size of the financial hole that sucked money from users of the former second largest exchange in the world, created by Sam Bankman-Fried.

“It took a lot of effort to get here,” Ray stated in a press release. “The assets of exchange companies have been highly mixed up, and their books and accounting records are incomplete and, in many cases, missing entirely.”

In fact, the submission states that the information provided is preliminary and “should not be used for any purpose.” But Ray, who also serves as director of restructuring for FTX’s group of creditors, said sharing the latest information is a priority.

“We believe it is more important to provide transparency to stakeholders by making this information public now than to wait until we can be sure of the facts and figures,” he said.

In the opposite direction of SBF

While FTX founder Sam Bankman-Fried has repeatedly claimed that FTX US is “fully solvent,” debtor group research says otherwise.

The presentation also updated the amount of net assets currently recovered and held by the debtor group, which grew from $5.5 billion to $6.1 billion since its last report in January. While the increase is primarily the result of updated digital asset prices, the group also recovered $202 million held in Alameda, $125 million in stablecoins and $57 million in cryptocurrencies held in subsidiaries.

“The analysis is further complicated by the incomplete nature of the books and accounting records and financial information maintained by the pre-petition Administration,” the group adds. Ray has for some time been condemning the misdeeds of “a very small group of grossly inexperienced and unsophisticated individuals” who were at the helm of FTX.

Lastly, the debtor group revealed more information about both exchanges’ daily deposits and withdrawals during the 90 days prior to the start of the bankruptcy cases. While the numbers unsurprisingly show an increase in withdrawals immediately prior to the FTX bankruptcy filing, they also show an increase in deposits attributed to Alameda deposits.

Today’s presentation and files are just the latest update to the FTX saga that still has much to reveal.

“This is the second in what FTX debtors anticipate to be a series of submissions as we continue to uncover the facts of this situation,” wrote Ray.

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