Collapsing cryptocurrency exchange FTX has about $1.24 billion in cash in total — but still owes at least $3.1 billion

In this photo illustration, the Bitcoin logo is shown on a smartphone with the FTX logo in the background.

Avishk Das | Light Rocket | Getty Images

Cash balances for FTX’s vast network of entities totaled about $1.24 billion as of Nov. 20, according to a new court filing late Monday.

The request was drafted by Alvarez & Marsal North America, which is advising FTX on restructuring efforts after the exchange filed for bankruptcy protection earlier this month.

Edgar Moseley, managing director at Alvarez & Marsal North America, said FTX and his team were able to track “significantly higher cash balances” than they were able to initially identify by November 16.

Credits include FTX and its various “silos”, ranging from the Alameda research business group to international affiliates. The largest amount, $393.1 million, comes from Alameda Research Ltd. The second largest balance is $303.4 million in LedgerX, a derivatives platform owned by FTX.

FTX’s Japanese unit, FTX Japan KK, has about $171.7 million in cash on its books, making it the company’s third largest cash earner. Mosley said in the filing that the cash is held by FTX and its affiliates with banks and other financial institutions.

The overall balance represents a marked shortfall in the billions that FTX owes to its creditors. A separate statement on Saturday said the company owes $3.1 billion to the 50 largest unsecured creditors.

It is not clear how FTX will raise the funds to fill this gap. Sam Bankman-Fried, the founder of FTX, is trying to negotiate a multi-billion dollar deal with investors to save FTX, even after he is fired from the company.

Bankman-Fried has been accused by peers in the industry of blatant mismanagement and fraud.

John Ray III, his replacement, gave a damning account of FTX’s death last week, saying in a filing that several FTX group companies “did not have proper corporate governance.”

Ray is now seeking to sell or restructure the global FTX Group.

FTX’s new management is expected to appear in Delaware bankruptcy court later Tuesday to recount the events that led to the cryptocurrency platform’s sudden crash and explain the steps it has taken since then to secure client funds and other assets.

Bitcoin fell to a two-year low on Tuesday as digital currencies continued to falter from the fallout from FTX’s demise. The cryptocurrency was trading around $15,480, its lowest point since November 11, 2020.

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