The bankrupt FTX cryptocurrency exchange has released a presentation which shows a “massive shortfall” in its digital and fiat currency holdings. According to the report, billions of customer funds are unaccounted for from the exchange and its U.S.-based arm.
On March 2nd, FTX published a presentation which showed that the exchange held $2.2 billion in exchange wallets and fiat accounts. The highest liquid amount was $694 million and was classified as “Category A Assets”. This includes cash, stablecoins, and other financial instruments. Bitcoin (BTC) and Ether (ETH) were priced at the current spot prices.
Only $191 million in total assets were found in the wallets associated with FTX USA, including $28 million in customer receivables, and $155 million in related party receivables.
FTX’s wallets also indicated a $9.3 billion net borrowing by the exchange’s sister trading firm, Alameda Research, and a net of $107 million owing to Alameda FTX US.
FTX had surpluses in its “Category B” assets, which include Bitcoin, Ethereum and other digital currencies. In total, $5.7 billion of digital assets were found in the wallets. However, the presentation notes that $2.2 billion of this was frozen after the exchange’s bankruptcy.
Recent disclosures by FTX have revealed a major deficit in the company’s assets, with a total shortfall of $8.6 billion across all its wallets and accounts. FTX US alone has a deficit of over $116 million.
John J. Ray III, the CEO of FTX, has commented that it has been a long and difficult process to uncover the facts of the situation, as the company’s assets were highly intermingled and the books and records are incomplete or even missing.
On February 28, Nishad Singh I, the former engineering director of FTX, pleaded guilty to wire fraud, as well as conspiracy to commit wire and commodities fraud. A number of Bankman-Fried’s associates have also reportedly agreed to cooperate with U.S. prosecutors in the recent months.
