• FTX has revealed a „massive shortfall“ in crypto and fiat currency holdings, with $8.9 billion customer funds missing from both FTX and its US subsidiary FTX US.
• John J. Ray III, chief restructuring officer and CEO of FTX, said books and records are incomplete or totally absent.
• Alameda Research reportedly borrowed around $9.3 billion from customer accounts before the bankruptcy.
FTX Reveals Massive Shortfall in Crypto & Fiat Currency Holdings
FTX has revealed a „massive shortfall“ in crypto and fiat currency holdings, with $8.9 billion customer funds missing from both FTX and its US subsidiary FTX US. According to the exchange’s balance sheet, there is a net deficit of $8.6 billion due to unchecked borrowing by sister trading firm Alameda Research. Documents show that only $694 million of these assets were liquid „Category A Assets,“ while the less liquid „Category B Assets“ include its own FTX Token which still trades above $0 at $1.26 despite the collapse of the crypto empire built by Sam Bankman-Fried.
John J Ray III Leads Investigation into Missing Funds
John J Ray III is leading an investigation into uncovering the facts surrounding this situation as chief restructuring officer and CEO of FTX. Ray noted inadequate record-keeping practices of prior management, with assets highly commingled while books and records are incomplete or totally absent in some cases.
Sam Bankman-Fried’s Prominent Ex-Backers
The collapse of Sam Bankman-Fried’s crypto empire rocked the cryptocurrency space to its core – taking several major crypto firms with it along with Wall Street figure Anthony Scaramucci who had ties to FTX . Read more about his story here: Sam Bankman-Fried: Crypto’s Fallen Hero?
Maximizing Funds for Former Customers
A transparent bankruptcy proceeding is being conducted in order to maximize the funds former customers can recover from their investments with Sam Bankman-Fried’s venture into cryptocurrencies.
Conclusion
In conclusion, these proceedings will hopefully shed light on what happened to billions in customer funds lost by both FTX and its US subsidiary, highlighting inadequacies in record keeping practices prior to current management taking over as well as maximizing returns for former customers invested in cryptocurrencies through Sam Bankman-Fried’s endeavor into the industry