FTX finds $5.5 billion in liquid assets, still faces ‘substantial shortfall’

Collapsed crypto exchange FTX said Tuesday it has identified $5.5 billion of liquid assets, but said based on current estimates each the international and U.S. based exchange still face a “substantial shortfall” from what the trading venues owe customers.

A court document with the restructuring team’s most up-to-date findings shows this $5.5 billion includes $1.7 billion of money, $3.5 billion of crypto assets, and $0.3 billion of securities.

Some $1.7 billion of the corporate’s assets are being held in a “hot wallet,” or crypto wallet connected to the web, typically making it less secure. Major crypto custody provider BitGo is maintaining one other $1.1 billion in additional secure “cold storage,” while the Securities Commission of the Bahamas holds $426 million and FTX Japan has one other $140 million.

A further $415 million was stolen hours after the corporate filed bankruptcy.

“We’re making essential progress in our efforts to maximise recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information,” John Ray III, FTX’s CEO under bankruptcy protection, said in a news release.

FTX Bankruptcy Doc 507-1

Last Wednesday, a lawyer representing FTX told a federal bankruptcy court the restructuring team had positioned over $5 billion of money, liquid cryptocurrency, and other liquid investments belonging to the corporate together with $4.6 billion in non-strategic illiquid investments.

From the time of that hearing through Tuesday 3 p.m. ET, crypto’s total market capitalization has risen by $143 billion, or greater than 14% to $998 billion from $855 billion, in line with CoinMarketCap.

Securities price $268 million held by Alameda Research include $197 million in shares of the Grayscale Bitcoin Trust (GBTC), $45 million in shares of the Grayscale Ethereum Trust (ETHE), $21 million the Bitwise 10 Crypto Index Fund (BITW), and $0.1 million in BlackRock (BLK) equity.

Value $253 million, FTX’s total portfolio of Bahamas real estate includes 36 different properties.

FTX Bankruptcy Doc 507-1

FTX Bankruptcy Doc 507-1

FTX also confirmed that, based on current estimates of the quantity of digital assets related to the FTX.com and FTX US exchanges as of the Petition Date, “there’s a considerable shortfall of digital assets at each exchanges.”

“We ask our stakeholders to grasp that this information continues to be preliminary and subject to alter. We’ll provide additional information as soon as we’re capable of accomplish that,” Ray added within the update.

At press time, bankruptcy claims market XClaim is pricing claims on FTX’s crypto deposits at 15.5 cents on the dollar.

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