Unexpectedly, it has come to light by our sources that FTX, the cryptocurrency exchange founded by Sam Bankman-Fried, had a staggering $6.8 billion hole in its balance sheet at the time of its bankruptcy filing last November. This news has sent shockwaves through the cryptocurrency industry, raising questions about the stability and sustainability of some of the world’s largest crypto firms.
As per the presentation submitted on Friday to the court handling the bankruptcy case, The presentation revealed that FTX.com suffered a massive deficit of $10.6 billion, while its FTX.US subsidiary had a comparatively smaller deficit of $87 million. The other companies in the group, Alameda Research and FTX Ventures, had net assets of $2.6 billion and $1.3 billion, respectively. The group’s total debt was estimated at around $11.6 billion, with the majority of it consisting of customer claims, and the assets were only worth $4.8 billion.
While the advisors mentioned that the statements were not audited and might undergo modifications, the revelation has caused widespread concern among investors and regulators alike. Many are now questioning how such a large deficit could have gone unnoticed for so long and what other cryptocurrency firms may be hiding similar discrepancies.
The news has also raised questions about the future of FTX and its founder, Sam Bankman-Fried. While Bankman-Fried has been widely praised for building FTX into one of the world’s largest cryptocurrency exchanges, this revelation may cast doubt on his ability to manage the company effectively. Some experts predict that FTX may be forced to sell off some of its assets to pay off its debts, while others believe that the company may be forced to file for bankruptcy again.
While many believe cryptocurrencies offer a revolutionary new way to invest and transact, they also come with a great deal of uncertainty and volatility. As such, investors must remain vigilant and stay informed about the financial health of their companies.