FTX.com Faces Serious Asset Shortage

03/03/2023 19:51 • Blockchain Buzz • 138 views

It is reported that according to a document submitted by FTX bankruptcy lawyer, there is a “serious shortage” of FTX.com assets. According to the latest price calculation, the total assets of US $2.2 billion have been determined in the wallet of FTX.com related accounts, of which only US $694 million belongs to the most liquid “Class A assets”, including legal currency, stable currency, bitcoin and ether currency. All tokens belonging to Class A assets in FTX have deficits. Other assets include $385 million in customer accounts receivable and major claims against FTX affiliate Alameda Research and related parties. Alameda borrowed $9.3 billion from FTX.com wallets and accounts. At the same time, the customer accounts payable determined by the FTX team was $7 billion. In addition, FTX US also showed an asset gap. The total assets in the account wallets related to the exchange were $191 million, the customer receivables were $28 million, and the related party receivables were $155 million.

Alameda borrowed $9.3 billion from FTX.com wallet and account

Interpret the above information:

A recent report highlights that FTX, a popular cryptocurrency exchange platform, is experiencing a significant “asset shortage.” The document, submitted by the company’s bankruptcy lawyer, reveals that FTX’s total assets are valued at $2.2 billion but only $694 million is classified as “Class A assets.”

Class A assets are the most liquid type of assets and include legal currency, stable currency, bitcoin, and ether currency. Shockingly, all tokens belonging to Class A assets are in deficit. This means that the company is unable to meet its liquidity requirements, which puts the entire business at risk.

Moreover, the report revealed that the company has significant liabilities in the form of customer accounts receivable and claims against FTX affiliate, Alameda Research, and related parties. Alameda Research has borrowed $9.3 billion from FTX.com wallets and accounts. However, the customer accounts payable was determined to be $7 billion. This means that there is a $2.3 billion shortfall that the company is not able to meet.

The report also highlights that FTX US, a subsidiary of FTX, is also facing an asset gap. The assets in the account wallets related to the exchange were $191 million, and customer receivables were $28 million. However, the company has claims against related parties worth $155 million.

These financial issues raise significant concerns about FTX’s capability to meet its obligations on time. With the company’s class A assets in deficit and significant liabilities, the company may not be able to compensate its customers appropriately. The report highlights that the exchange must act quickly to address these issues and find a viable solution to avoid bankruptcy.

In conclusion, the report’s findings suggest that FTX is facing a severe asset shortage, which may cause further problems if not addressed immediately. FTX needs to take appropriate steps to ensure that they can meet their obligations and address the deficit in class A assets. Failure to do so would undoubtedly have significant financial consequences on the company’s future viability.

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FTX.com Faces Serious Asset Shortage

Alameda borrowed $9.3 billion from FTX.com wallet and account

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