- The statement of the exchange was made during the trial
- So far, the company has only tracked $2.7 billion of client funds.
- The total hole in the budget of the exchange is $ 11.6 billion
Yesterday, March 2, another hearing on the FTX bankruptcy case was held. As part of the legal proceedings, the exchange for the first time publicly acknowledged the loss of $8.9 billion of client funds, which were simply not taken into account.
This is reported WSJ citing own source. FTX’s statement was as follows:
“It has been discovered that $8.9 billion of customer funds are currently missing.”
The confusion arose from the company’s disorganized reporting. The “hole” in the FTX budget is $11.6 billion. Of this, the exchange was able to track only a small part of $2.7 billion. The estimated value of assets is fixed based on data from November last year.
Just before the bankruptcy, Alameda Research borrowed $9.3 billion in client funds from the exchange. With this in mind, the amount indicated in the course of the trial is most likely contained on the balance sheet of this company in the form of unliquidated obligations.
But even these data are not final. This is how the new FTX CEO John J. Ray III commented on the situation:
“The company’s books of records are incomplete, in some cases they are completely missing. Therefore, it is important to emphasize that this information is preliminary and may be refined in the future.”
It is almost impossible to name the exact amount of compensation now. Even of the $2.7 billion that the company has been able to track, $1.5 billion is illiquid assets, including a supply of FTT tokens.
We previously reported that former FTX CTO Nishad Singh pleaded guilty to several counts. Previously, Caroline Ellison (CEO Alameda Research) and Gary Vangu (co-founder of the exchange) did the same.