It’s official: FTX is losing a lot of its customer funds.
how much is a lot? Try Around $9 a billion.
in qualifying analysis(opens in new tab) released by bankruptcy At the cryptocurrency exchange on March 2nd, FTX released its current findings to interested parties. And the worst was confirmed. It was a “massive shortfall” and found only about $2.2 billion in client assets. And even less of that amount, his $694 million, is liquid assets like cash, stablecoins, bitcoin, and ether.
Two of SBF’s closest associates received the petition.cooperate when it is against him
One of the reasons FTX found itself in this predicament had to do with the borrowing of client money by its trading firm, Alameda Research. The presentation claims Alameda was offered his $9.3 billion by his FTX customers. Alameda has borrowed another $191 million from his FTX US clients, a US-based exchange.
Disgraced FTX co-founder and former CEO Sam Bankman-Fried once claimed that FTX US was completely insulated from FTX’s problems, but the company’s latest analysis shows that FTX US It turns out that there is also a shortage of hundreds of millions of dollars.
“It took a lot of work to get to this point,” said John J. Ray III, current CEO of FTX, which he took over during bankruptcy. statement(opens in new tab)“The assets of the exchange are highly mixed and the books and records are incomplete and often non-existent at all.For these reasons, this information is still preliminary and It is important to emphasize that this is subject to change, and rather than waiting for certainty, it is important to publish this information now to provide transparency to our stakeholders.”
FTX was once one of the largest cryptocurrency exchanges in the world. However, in November last year, it was reported that sister company Alameda Research had gone bankrupt. Shortly thereafter, he sold his FTT token, his FTX cryptocurrency held by competitor Binance. Over the next few days, billions of dollars were withdrawn by customers from the exchange. Within a week, FTX filed for bankruptcy. Evidence of Bankman-Fried’s improper use of customer funds soon emerged, leading to arrests and prosecutions for securities fraud.
Alameda Research CEO Caroline Ellison said: pleaded guilty He was indicted on numerous fraud charges in December. She faces up to her 120-year prison sentence. Ellison also agreed to cooperate with prosecutors in filing a lawsuit against Bankman-Fried.
