FTX had a $6.8 billion shortfall in its balance sheet when it filed for bankruptcy last November
The bankrupt Sam Bankman Fried’s exchange FTX had a $6.8 billion deficit in its balance sheet when it filed for bankruptcy last November. This information is taken from a presentation in bankruptcy court yesterday.
This includes a $10.6 billion shortfall in the main FTX.com business and an $87 million shortfall in FTX.US. Sister trading company Alameda Research has a net worth of $2.6 billion, while FTX Ventures has a net asset of $1.3 billion.
The group of companies has about $11.6 billion in liabilities, most of which are customer claims, compared with $4.8 billion in assets. However, the advisors note that the statements have not been checked and are subject to change.
Sam Bankman-Fried and former management of FTX borrow $3.2 billion from Alameda Research
Sam Bankman-Fried and the former management of FTX borrowed $ 3.2 billion from the exchange.
According to court documents, former CEO Sam Bankman-Fried and FTX management received $3.2 billion in payments and loans, mostly from sister investment fund Alameda Research.
Sharing the FTX Debtors’ press release just issued: https://t.co/r7PlneGSXF
— FTX (@FTX_Official) March 16, 2023
Specifically, Bankman-Fried borrowed up to $2.2 billion from Alameda Research, an investment fund under its control. The following primary beneficiary after Bankman-Fried is Chief Technical Officer Nishad Singh, receiving around $587 million. Recently Nishad Singh pleaded guilty to charges including fraud and conspiracy in the collapse of FTX.
FTX also pays other former executives as follows:
- $246 million for Gary Wang, co-founder of FTX
- $87 million for Ryan Salame, former co-CEO of FTX Digital Markets
- $25 million for Sam Trabucco, former co-director of Alameda
- $6 million for Caroline Ellison, former CEO of Alameda
According to a statement from FTX’s new management, the amount does not include $240 million spent on luxury real estate in the Bahamas or political and charitable donations.
FTX added that it is impossible to predict the amount and timing of recovery at this time, and there will be the possibility of uncovering more assets, liabilities, and transactions.
In the latest update in early March, the bankruptcy unit that took over FTX claimed to have recovered $6.1 billion in exchange assets but admitted the deficit amounted to more than $9.4 billion – with the biggest debtor being Alameda.
FTX recently had to pay $38 million to attorneys and financial firms for untangling its troubles and efforts to recover assets the exchange made before its bankruptcy.
The new interim CEO of FTX, Mr. John J. Ray III, shortly after taking over FTX and having a preliminary understanding of the company’s situation, said that “post-bankruptcy is a series of hellish days”, saying that FTX ultimately failed in management and had weak financial records.
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- FTX Founders And Executives Received $3.2 Billion From Alameda Research, As Revealed In Bankruptcy Filing