FTX presentation shows 'massive shortfall' in firm's assets

Bankrupt cryptocurrency speech FTX has revealed a "massive shortfall" successful its integer plus and fiat currency holdings with billions worthy of lawsuit funds missing from some the speech and its United States-based arm, FTX US. 

On Mar. 2 the speech released a presentation showing FTX had $2.2 cardinal successful speech wallets and fiat accounts of which $694 cardinal consisted of the astir liquid "Category A Assets" that see cash, stablecoins, Bitcoin (BTC) and Ether (ETH) priced astatine the latest spot prices.

Only $191 cardinal of full assets were located successful the wallets of the accounts associated with FTX US, successful summation to $28 cardinal of lawsuit receivables and $155 cardinal of related enactment receivables.

The balances of FTX's wallets and accounts astatine the clip of its bankruptcy showing an $8.6 cardinal deficit. Source: FTX

FTX wallets showed a $9.3 cardinal nett borrowing by the exchanges sister trading steadfast Alameda Research and a $107 cardinal nett payable to Alameda from FTX US.

FTX recorded surpluses crossed its little liquid "Category B Assets" that included its ain FTX Token (FTT) but the holdings are insignificant compared to the deficits connected its different held assets.

In full FTX recorded an $8.6 cardinal shortage crossed each wallets and accounts portion FTX US recorded a shortage of $116 million.

Related: FTX Japan allows full withdrawal of funds — users rejoice the ‘escape’

John J. Ray III, the main restructuring serviceman and CEO of FTX, said successful a Mar. 2 statement the presumption is the 2nd successful a "series" arsenic it continues to "uncover the facts of this situation" and added:

"It has taken a immense effort to get this far. The exchanges' assets were highly commingled, and their books and records are incomplete and, successful galore cases, wholly absent."

On Feb 28, erstwhile FTX engineering director, Nishad Singh pleaded blameworthy to charges of ligament fraud on with ligament and commodities fraud conspiracy.

Singh’s plea follows a fig of Bankman-Fried's adjacent associates reportedly agreeing to cooperate with U.S. prosecutors successful caller months.