FTX.com Assets Shortage Sparks Concerns of Insolvency

03/03/2023 19:51 • Blockchain Briefs • 111 views

It is reported that according to a document submitted by FTX bankruptcy lawyer, there is a “serious shortage” of FTX.com assets. According to the latest price calculation, the total assets of US $2.2 billion have been determined in the wallet of FTX.com related accounts, of which only US $694 million belongs to the most liquid “Class A assets”, including legal currency, stable currency, bitcoin and ether currency. All tokens belonging to Class A assets in FTX have deficits. Other assets include $385 million in customer accounts receivable and major claims against FTX affiliate Alameda Research and related parties. Alameda borrowed $9.3 billion from FTX.com wallets and accounts. At the same time, the customer accounts payable determined by the FTX team was $7 billion. In addition, FTX US also showed an asset gap. The total assets in the account wallets related to the exchange were $191 million, the customer receivables were $28 million, and the related party receivables were $155 million.

Alameda borrowed $9.3 billion from FTX.com wallet and account

Analysis based on this information:

As per the document submitted by FTX bankruptcy lawyer, FTX.com faces a “serious shortage” of assets. The total value of assets in wallets related to FTX.com accounts stands at US $2.2 billion, of which only $694 million holds the coveted Class A assets including legal currency, stable currency, Bitcoin, and Ethereum. This shortage of assets has raised concerns over the exchange’s insolvency.

FTX.com’s Class A assets are deficient in all tokens, which signifies that the exchange is short of liquidity to a significant extent. The exchange’s liabilities currently amount to $385 million in customer accounts receivable and significant claims against FTX affiliate Alameda Research and related entities, further worsening the situation. Alameda Research is facing the repayment of $9.3 billion borrowed from FTX.com wallets and accounts, adding to the deficit of assets.

Other alarming financial indicators of FTX.com include a customer account payable of $7 billion, and as FTX US reports, assets gap impeding their progress; the associated account wallets hold only $191 million in total assets. Customer receivables and related party receivables are estimated at $28 million and $155 million, respectively.

FTX.com operations require considerable financial resources and have incurred significant losses throughout its existence, with a lack of transparency in their finances. The future of FTX.com remains uncertain as an asset disadvantage of this magnitude prohibits the exchange from completing customers’ buy and sell orders, resulting in massive losses for account holders.

The safety and security of client assets is of utmost importance in the cryptocurrency market. Simultaneously, the complexities of high-volume trading and transactions require extensive financial backing to maintain a sustainable business model. With FTX.com’s recent asset shortage, the future of the exchange remains uncertain, raising concerns about the safety of the client’s funds at all exchanges.

In conclusion, FTX.com’s shortage of assets raises apprehensions about the safety and stability of clients’ funds. The exchange’s future remains uncertain at this stage, with the lack of transparency in their financial records concerning to investors.

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FTX.com Assets Shortage Sparks Concerns of Insolvency

Alameda borrowed $9.3 billion from FTX.com wallet and account

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