December 11, 2023

FTX interim administration says $8.9 billion shortfall in customer funds

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FTX interim administration says $8.9 billion shortfall in customer funds

Managers of the bankrupt cryptocurrency exchange FTX were able to discover only $2.7 billion of the $11.6 billion that should be in customer accounts.

The temporary administration of the exchange was ableinventory almost all wallets associated with and FTX US. According to a presentation with preliminary reports published on the website of the law firm Kroll, the shortfall in client funds is about 8.9 billion.

Part of the shortfall amount can be attributed toaccount of Alameda Research, which borrowed $9.3 billion from customer accounts before the stock market crash. FTX accounts receivable accounts for approximately $413 million. This amount may include blocked accounts, as well as accounts whose owners have not yet been identified.

It's unclear whether FTX customers will be able to get their entirean amount of $2.8 billion, since $1.5 billion of this is crypto assets, the value of which fell sharply after the collapse of the exchange. About $157 million is stored in Serum (SRM), $1 billion in MAPS, and another $130 million in FTT tokens.

We would like to remind you that the Securities and Exchange CommissionUS Exchange Commission (SEC) accused FTX founder Sam Bankman-Fried of using client funds to bail out Alameda Research's trading arm and to finance his own luxurious lifestyle. 

Previously, the former technical director of FTX officially pleaded guilty to criminal offenses and agreed to cooperate with the investigation.