FTX Cryptocurrency exchange CEO Gabe Bankman-Fried at a hearing on Capitol Hill on May 12, 2022.
Tom Williams/CQ-Roll Call via Getty Images
FTX held $900 million in liquid assets but $9 billion of liabilities on its balance sheet, per the FT.
The biggest part of those assets was $470 million of Robinhood shares, the FT reported.
That stock is owned by a Sam Bankman-Fried entity not listed in FTX’s bankruptcy filing Friday.
Crypto exchange FTX held just $900 million in easy-to-sell assets, but $9 billion of liabilities, on its balance sheet a day before it filed for bankruptcy, the Financial Times has reported.
The size of the financial gap shown in FTX investment materials seen by the FT could mean big losses for the exchange’s customers, the report said.
The largest of FTX’s liquid assets was $470 million of Robinhood shares, which the exchange’s CEO Sam Bankman-Fried was actively looking to sell on Friday, per the FT. The stock is owned by Emergent Fidelity, an entity controlled by Bankman-Fried but not listed in FTX’s bankruptcy filing, it said.
Its second-biggest liquid asset was $200 million of cash held with crypto company Ledger Prime, while the company’s largest asset as of Thursday was $2.2 billion in digital currency serum.
Bankman-Fried resigned as FTX’s CEO and the company filed for Chapter 11 bankruptcy after it failed plug a shortfall of up to $8 billion in a liquidity crunch. The filing includes sister trading arm Alameda Research and 130 other affiliated entities that make up the FTX Group.
FTX’s troubles have triggered a confidence crisis about the viability of crypto platforms, raising concerns of contagion that could see other face a rush for withdrawals by customers.
On Sunday, Bahamas law authorities said they are investigating FTX for “criminal misconduct,” after it froze the the assets of an FTX subsidiary last week.
The turmoil at FTX has put pressure on the crypto market across the board, and leading tokens bitcoin and ethereum have fallen about 20 % in the past week, according to CoinMarketCap data.
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Source:: Business Insider