Bankrupt cryptocurrency exchange FTX and its U.S. arm, FTX US, have both lost billions of dollars in customer funds after disclosing a “massive gap” in its holdings of digital assets and fiat currencies.
On March 2, the exchange released a presentation showing that FTX has $2.2 billion in exchange wallets and fiat accounts, of which $694 million is in the most liquid “Class A assets,” including cash, stablecoins , Bitcoin and Ethereum. In addition to $28 million in customer receivables and $155 million in related party receivables, only $191 million in total assets were held in wallets in accounts associated with FTX US. The exchange’s sister trading firm, Alameda Research, had a net borrowing of $9.3 billion, and FTX US paid Alameda a net $107 million, according to FTX Wallet.
FTX Records Surplus on Its Less Liquid "Class B Assets," Which Include Its Own FTX Token But those assets are insignificant compared with the deficits in other holdings.
FTX’s total deficit across all wallets and accounts was $8.6 billion, while FTX US’s deficit was $116 million. The presentation is the second in a "series" as FTX continues to "uncover the facts of the situation," John J. Ray III, FTX's Chief Restructuring Officer and CEO, said in a March 2 statement. and added: “It took a huge amount of effort to get to this point. Exchange assets are highly mixed, with books and records that are patchy and in many cases non-existent.” On Feb. 28, former FTX director of engineering Nishad Singh pleaded guilty to charges of wire fraud and wire and commodity fraud conspiracy.
Singer's request comes after some close associates of Bankman-Fried reportedly agreed to cooperate with U.S. prosecutors in recent months.
