FTX had a 6.8b hole when it filed for bankruptcy

FTX, the defunct crypto exchange, had a $6.8b hole in its balance sheet when it declared bankruptcy last year.

According to the group’s advisors, FTX’s debt includes a $10.6b deficit for the main FTX.com business and an $87m short for FTX.U.S.

Alameda Research, the trading wing of FTX, had $2.6b in net assets. Meanwhile, FTX Ventures reported $1.3b in losses.

FTX’s total assets and debts

According to a document submitted to the bankruptcy court on Mar. 17, FTX-affiliated businesses had assets worth $4.8b and cumulative liabilities of around $11.6b when they filed for bankruptcy in November; the bulk of which were customer claims.

There was a shortfall of around $87m in FTX U.S., which had assets worth $255m and debts of about $342m. Former FTX boss, Sam Bankman-Fried, has repeatedly stated that the U.S. exchange was stable.

FTX group had a $6.8 billion shortfall in its balance sheet when it filed for bankruptcy last November. In total, the group of companies had debts of about $11.6 billion, the majority of that in customer claims, against $4.8 billion in assets, according to a presentation filed to… https://t.co/A6uKYTBfTl

— Wu Blockchain (@WuBlockchain) March 18, 2023

At the time of the bankruptcy filing, the companies’ businesses collectively held nearly $900m in cash and other equivalents.

Most of their holdings were investments, comprising wagers on companies including tactical drone manufacturer Brinc Drones; artificial intelligence firm, Anthropic; and web3 company Mysten Labs. Combined, these investments are worth $3.5b.

According to the study, the numbers have yet to be audited and could, therefore, change.

Sam Bankman-Fried’s lawyers negotiate new bail terms

According to a trial update from yesterday, Sam’s lawyers and U.S. prosecutors are close to agreeing on new bail terms.

Lawyers for Sam Bankman-Fried are nearing an agreement with U.S. prosecutors on revised bail conditions for the indicted FTX cryptocurrency exchange founder, who is trying to convince a skeptical judge he should remain free. https://t.co/7JxIrBCtOU

— Qudach (@qudach) March 18, 2023

It is after U.S. District Judge Lewis Kaplan noted that Sam’s conversations with others would go beyond the limit of his $250m bail arrangement at a hearing on Mar. 10.

His lawyer, Christian Everdell, wrote in a letter handed on Mar. 17 to the federal court in Manhattan stating that both parties thought they were “close to a resolution” and expected to formally propose additional limits by next week.