FTX: Alameda could borrow up to $65 billion without collateral
January 18, 2023
By Priya NV
FTX’s back door to Alameda gave the research arm access to borrow billions of customers fund without collateral
The recovered funds are less than the assets that were supposed to be on both FTX.com and FTX US
FTX Debtors released a new update on the recent developments in the bankruptcy proceedings. The update was regarding a meeting with the advisors and members of the Official Committee of Unsecured Creditors (OCC). During the meeting, FTX Debtors revealed that the composition of the assets recovered.
In a presentation to OCC, the Debtors stated that it recovered $5.5 billion in liquid assets consisting of $1.7 billion in cash. In addition, $3.5 billion in cryptocurrencies and $0.3 billion in securities made up the rest of the assets. However, despite the large recovery, FTX Debtors stated that both FTX and FTX US still fall short of money. A press release on the same read,
“The FTX Debtors also confirmed that, based on current estimates of the amount of digital assets associated with the FTX.com and FTX US exchanges as of the Petition Date, there is a substantial shortfall of digital assets at both exchanges.”
Identified assets
Furthermore, the presentation showed that the top tokens held by FTX, FTX.US, and Alameda were Solana (SOL), FTT, Bitcoin (BTC), Ethereum (ETH), Aptos (APT), Dogecoin (DOGE), Matic, XRP, and others. Meanwhile, the tokens in the illiquid crypto assets list included Serum (SRM), SOLETH, MAPS, SOLBTC, Oxygen (OXY), MEDIA, and BEAR.
Moreover, the Debtors identified 36 properties of the exchange in the Bahamas. The value of these properties was estimated at $253 million on a cost basis.
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