“It has taken a huge effort to get this far,” FTX chief restructuring officer John J. Ray III said in a statement. “The exchanges' assets were highly commingled, and their books and records are incomplete and, in many cases, totally absent.”
According to the presentation filed by FTX Debtors in the firm's Chapter 11 bankruptcy case Thursday, the exchange had $2.2 billion in crypto wallets and fiat accounts, of which only $694 million were in the most liquid currencies, such as fiat, stablecoins, BTC, and ETH, plus $385 million in customer receivables. Against these assets, FTX.com's balance showed a $9.3 billion borrowing by its sister quant trading firm Alameda Research.
Meanwhile, the exchange’s United States-based arm, FTX US, was reported to have a shortfall as well, despite Sam Bankman-Fried’s earlier claims that it remains “fully solvent.” FTX US wallets showed $191 million of total assets, in addition to $28 million of customer receivables and $155 million of related party receivables. These assets compare to “$335 million of customer claims and $283 million of related party claims payable.”
In total, the balances of FTX.com showed an $8.6 billion deficit, while FTX US recorded a deficit of $116 million.
"This is the second in what the FTX Debtors anticipate will be a series of presentations as we continue to uncover the facts of this situation," Ray wrote.
Earlier in December, when testifying before the U.S. House Committee on Financial Services, Ray was asked if the exchange had significant risk management systems. “There were virtually no internal controls and no separateness whatsoever,” FTX CEO said at the time.
Previously, Ray, who used to oversee the liquidation of Enron, claimed that FTX's operation was concentrated in the hands of “a very small group of grossly inexperienced and unsophisticated individuals.”