FTX Had $1B Of Liquid Assets Against $9B Of Liabilities A Day Before Collapse
- Disgraced crypto exchange FTX had over $1 billion worth of assets that could be easily liquidated against over $9 billion of liabilities across several investors and creditors.
- The largest liquifiable asset was the stake FTX had in an American financial services company headquartered in Menlo Park, California, called Robinhood, and it was worth $470 million.
- The founder of the exchange, SBF, has now been apprehended and was seen with authorities in the Bahamas at the Albany tower which is where he lives. His father is seen with him as well.
The now-disgraced crypto exchange FTX, founded by Sam Bankman-Fried, also known as SBF in the crypto space, was already in dire states before it was confirmed that the Bahamas-based firm had collapsed and as a result, withdrawals were paused. According to a report from Financial Times, the exchange had over $1 billion worth of assets that could be easily liquidated against over $9 billion of liabilities across several investors and creditors.
According to the FT report, which cited investment materials as the source, the largest liquifiable asset and the one with the biggest share was the stake FTX had in an American financial services company headquartered in Menlo Park, California, called Robinhood. These shares were worth a total of $470 million and were not revealed by the firm in its bankruptcy filing on Friday, which already included 134 entities.
Interestingly, the document was shared with the investors before the bankruptcy which also added that investors could face significant losses on the crypto coins they had held on the exchange. The document also revealed the huge financial hole that FTX had on its balanche sheet and what it meant for the future of the exchange.
Additionally, there were initially rumors that Robinhood would be purchase by FTX after Bankman-Fried, also known as SBF in the crypto space, confirmed that he had a 7.6% stake in the company. While the rumors were lated put down, had the now-troubled exchange acquired Robinhood, things would’ve been quite different for the California-based stock and crypto trading platform.
Veteran insolvency practitioner, John J Ray, has been brought in to guide the SBF-led exchange through the tough times while the executive himself has signed. People claim that he is currently in Argentina while some claim that he is in the Bahamas and aims to make way for Dubai. A news outlet in Argentina confirmed that he was not in the country and also revealed that if he were seen anywhere, he would immediately be put behind bars.
Interestingly, several people on Twitter have commented that the founder of the exchange has been now apprehended. According to Mario Nawfal, the founder and CEO of IBCgroup.io, the former CEO of FTX was seen with authorities in the Bahamas at the Albany tower which is where he lives. His father is seen with him.”
The police, regulators, SBF, and his father were seen in the lobby of the Albany Marina Towers and later left the premises, Nawfal said in another Twitter post. On the other hand, another Twitter user pointed out that this looks like a house arrest.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
