In this article, you will learn how many liabilities does FTX have. Sam Bankman-Fried's main international FTX exchange held just $900mn in easily sellable assets against $9bn of liabilities the day before it collapsed into bankruptcy, according to investment materials seen by the Financial Times.
How Many Liabilities Does FTX Have?
FTX-affiliated trading firm Alameda Research and FTX US reportedly each have liabilities of as much as $50 billion.
On Alameda Research's bankruptcy filing, it lists assets of between $10 billion and $50 billion, liabilities of between $10 billion and $50 billion, and a population of creditors totaling more than 100.000. Yahoo Finance reported Friday (Nov. 11).
Alameda Research is one of more than 130 FTX Group companies that filed for bankruptcy protection Friday. Others that are beginning voluntary Chapter 11 proceedings in the United States include FTX.com and FTX US, FTX.com said in a Friday press release.
FTX US has liabilities of between $10 billion to $50 billion, equal to those of Alameda Research. It has a similar range in assets, CoinDesk reported Friday, citing the companies' respective bankruptcy filings.
Additional companies listed in a bankruptcy filing include BitPesa, Blockfolio, Quoine and more than a dozen FTX entities, according to the report.
Sam Bankman-Fried, the former CEO of the FTX Group who has resigned from that role but will remain with the company, tweeted after the announcement of the bankruptcy filing: “This doesn't necessarily have to mean the end for the companies or their ability to provide value and funds to their customers chiefly, and can be consistent with other routes.”
A Spreadsheet Listing FTX International's Assets and Liabilities
The document, shared with prospective investors before the bankruptcy, provides a detailed picture of the financial hole in the FTX crypto empire and suggests customers of FTX international may face steep losses on cash and crypto assets they held on the exchange.
FTX's collapse has delivered a powerful blow to a crypto industry already reeling from a string of corporate failures this year.
Bankman-Fried had been a leading figure in the sector and had presented himself as an entrepreneur keen to bring the wild west crypto market in line with mainstream regulation. The 30-year-old had secured backing from blue-chip investors, became a major Donor to the US Democratic party and plastered his FTX exchange's logo on the Miami Heat arena during his meteoric rise following the founding of his trading venue in 2019.
Bankman-Fried on Friday put his $32bn international exchange, along with FTX US and his trading firm Alameda Research, into bankruptcy proceedings in federal court in Delaware.
A spreadsheet listing FTX international's assets and liabilities, seen by the Financial Times, point at the issues that brought Bankman-Fried crashing back down to earth. It references $5bn of withdrawals, a negative $8bn entry described as “hidden, poorly laby led 'fiat@' account".
In the investment materials, FTX Trading Ltd, the company behind the main international exchange, is recorded as having liabilities of $8.9bn, the biggest portion of which is $5.1bn of US dollar balances. This article is about how many liabilities does FTX have.
