Bankrupt cryptocurrency exchange FTX has disclosed a “massive shortfall” in its digital asset and fiat currency holdings with billions in client funds missing from both the exchange and its US-based arm, FTX US. .
On March 2, the exchange launched a presentation showing that FTX held $2.2 billion in exchange wallets and trust accounts of which $694 million consisted of the most liquid "Category A Assets" including cash, stablecoins, Bitcoin (BTC) and ether (ETH) valued at the latest spot prices.
Only $191 million of total assets were located in the wallets of accounts associated with FTX US, in addition to $28 million of customer receivables and $155 million of related party receivables.
FTX wallets showed a net loan of $9.3 billion from sister exchange trading firm Alameda Research and a net payment of $107 million to Alameda from FTX US.
FTX posted surpluses in its less-liquid "B-tier assets" which included its own FTX token (FTT) but the holdings are insignificant compared to the shortfalls of his other assets owned.
In total, FTX posted a deficit of $8.6 billion across all wallets and accounts, while FTX US posted a deficit of $116 million.
Related: FTX Japan Allows Full Withdrawal - Users Rejoice at 'Escape'
John J Ray III, director of restructuring and chief executive of FTX, said in a March 2 statement statement the presentation is the second in a "series" as it continues to "uncover the facts of this situation" adding:
"It has taken a lot of effort to get this far. The exchanges' assets were highly mixed, and their books and records are incomplete and, in many cases, absent entirely."
On February 28, former FTX engineering director Nishad Singh pleaded guilty to the charges of wire fraud together with conspiracy of wire and commodity fraud.
Singh's plea follows several close associates of Bankman-Fried, reportedly. agreeing to cooperate with US prosecutors in recent months.
Post navigation
