{"id":22214,"date":"2023-03-02T15:40:28","date_gmt":"2023-03-02T23:40:28","guid":{"rendered":"https:\/\/coinnetworknews.com\/ftx-presentation-shows-massive-shortfall-in-firms-assets\/"},"modified":"2023-03-02T15:40:28","modified_gmt":"2023-03-02T23:40:28","slug":"ftx-presentation-shows-massive-shortfall-in-firms-assets","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/ftx-presentation-shows-massive-shortfall-in-firms-assets\/","title":{"rendered":"FTX presentation shows ‘massive shortfall’ in firm’s assets"},"content":{"rendered":"
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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.\u00a0 <\/p>\n

On Mar. 2 the exchange released a presentation<\/a> 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<\/a>) and Ether (ETH<\/a>) priced at the latest spot prices.<\/p>\n

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.<\/p>\n

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The balances of FTX’s wallets and accounts at the time of its bankruptcy showing an $8.6 billion deficit. Source: FTX<\/a><\/em><\/figcaption><\/figure>\n

FTX wallets showed a $9.3 billion net borrowing by the exchanges sister trading firm Alameda Research and a $107 million net payable to Alameda from FTX US.<\/p>\n

FTX recorded surpluses across its less liquid “Category B Assets” that included its own FTX Token (FTT<\/a>) but the holdings are insignificant compared to the deficits on its other held assets.<\/p>\n

In total FTX recorded an $8.6 billion deficit across all wallets and accounts while FTX US recorded a deficit of $116 million.<\/p>\n

Related:\u00a0FTX Japan allows total withdrawal of funds \u2014 users rejoice the \u2018escape\u2019<\/em><\/strong><\/a><\/p>\n

John J. Ray<\/a> III, the chief restructuring officer and CEO of FTX, said in a Mar. 2 statement<\/a> the presentation is the second in a “series” as it continues to “uncover the facts of this situation” and added:<\/p>\n

“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.”<\/p><\/blockquote>\n

On Feb 28, former FTX engineering director, Nishad Singh pleaded guilty to charges<\/a> of wire fraud along with wire and commodities fraud conspiracy.<\/p>\n

Singh\u2019s plea follows a number of Bankman-Fried’s close associates reportedly agreeing to cooperate<\/a> with U.S. prosecutors in recent months.<\/p>\n