FTX debtors revealed that both FTX.com and FTX.US have a “massive shortfall” of assets.
In a second presentation to its official creditor committee, the FTX debtors said that they have located $2.2 billion of total assets at FTX.com and $191 million at FTX.US.
Of the assets located at FTX.com, just $694 million can be classified as “Category A Assets,” which includes liquid cryptocurrencies like Bitcoin, Ethereum, stablecoins and fiat currency.
At the time of the petition, Alameda Research had a net borrowing of $9.3 billion from wallets associated with FTX.com.
Meanwhile, the exchange’s U.S. subsidiary FTX.US had a $107 million net payable position to Alameda. By the debtors’ estimates, FTX.US has just $109 million in total assets against $335 million in customer claims and $283 million of related party claims payable.
The reported shortfall at FTX.US comes despite former FTX CEO Sam Bankman-Fried’s repeated attempts to convince the larger crypto community that the U.S.-based exchange remained completely solvent at all times.
“It has taken a huge effort to get this far. The exchanges’ assets were highly commingled, and their books and records are incomplete and, in many cases, totally absent,” said John J. Ray III, FTX’s new CEO and restructuring officer. He emphasized that the information presented was still preliminary and subject to change once more facts were uncovered.
The final page details the $6.1 billion in assets, of which $4 billion are crypto.
$2.4 billion of these are held by Alameda.
All in all, it is about as expected.
There was no big liability black swan (most Dotcom non-customer liability being to Alameda). pic.twitter.com/KhrQsEfJCV
— FTX Creditor (FTX Creditor) (@AFTXcreditor) March 2, 2023
Most FTX creditors were unsurprised by the information presented, with some arguing that it failed to present a complete picture of previously unattributed funds.
And the real hole we can find only if all related parties balanced will be revealed. Namely Alameda and Ventures. Our repayment fully depend on it – it is clear from day -1, when SBF released his spreadsheet.
— MHE BE3ET ( FTX Creditor) (@MHE_BE3ET) March 2, 2023
According to wassielawyer, a lawyer specializing in restructuring and insolvency, much more will become apparent after the size of Alameda’s liabilities is revealed.
“If it turns out Alameda owes significant sums to creditors other than FTX – then we can expect recoveries to take a significant hit,” tweeted wassielaywer.
18/ But more interestingly as can be seen from the final slides in the presentation, they are looking at the deposits and withdrawals in the 90 day period before FTX went into Chapter 11.
Which sounds to me like they are at least going to try to clawbacks.
— wassielawyer （哇西律师） (@wassielawyer) March 3, 2023