FTX presentation shows ‘massive shortfall’ in firm’s assets

Mar 03. 2023

By Judith Bannermenquist

FTX and FTX US together have billions in deficits in their exchange wallets and fiat accounts, uncovered in a "huge effort" according to the exchange's CEO.

Bankrupt cryptocurrency exchange FTX has revealed a “massive shortfall” in its digital asset and fiat currency holdings, with billions worth of customer funds missing from both the exchange and its United States-based arm, FTX US. 

On March 2, the exchange released a presentation showing FTX had $2.2 billion in exchange wallets and fiat accounts, of which $694 million consisted of the most liquid “Category A Assets” that include cash, stablecoins, Bitcoin (BTC $22,368) and Ether (ETH $1,570) priced at the latest spot prices.

Only $191 million of total assets were located in the wallets of the accounts associated with FTX US, in addition to $28 million of customer receivables and $155 million of related party receivables.

FTX wallets showed a $9.3 billion net borrowing by the exchange’s sister trading firm, Alameda Research, and a $107 million net payable to Alameda from FTX US.

To read the entire article...Click Here!