The illustration in this photo shows the Bitcoin logo displayed on a smartphone with the FTX logo in the background.
Abhishek Das | Lightrocket | Getty Images
FTX’s vast web of entities had cash balances totaling about $1.24 billion as of Nov. 20, according to a new court filing late Monday.
The filing was prepared by Alvarez & Marsal North America, which has been advising FTX on its restructuring efforts after filing for bankruptcy protection earlier this month.
Edgar Mosley, managing director of Alvarez & Marsal North America, said FTX and his team were able to track “significantly higher cash balances” than they were initially able to identify by November 16. rice field.
The balance includes FTX and various “silos” ranging from trading group Alameda Research to international subsidiaries. The second largest balance is his $303.4 million on LedgerX, a derivatives platform owned by FTX.
FTX Japan Co., Ltd., the Japanese division of FTX, has approximately $171.7 million in book cash, making it the company’s third largest source of cash. Mosley said the cash is held by FTX and its affiliates with banks and other financial institutions.
The overall balance represents a significant shortfall of billions of dollars that FTX owes its creditors. The company owes his $3.1 billion debt to the 50 largest unsecured creditors, according to a separate filing on Saturday.
It’s not clear how FTX will raise the funds it needs to fill that gap. I’m trying to negotiate a multi-billion dollar deal with a house.
Bankman-Fried has been accused of flagrant mismanagement and fraud by industry peers.
His successor, John Ray III, last week offered a harsh explanation for the demise of FTX, saying many of the FTX Group companies “didn’t have proper corporate governance.”
Ray is currently seeking to sell or reorganize the Global FTX Group.
FTX’s new management will appear in Delaware bankruptcy court late Tuesday, detailing the events that led to the cryptocurrency platform’s sudden demise, and the steps it has taken to protect client funds and other assets. will be explained.
Bitcoin plunged to a two-year low on Tuesday as digital coins continued to wobble in the aftermath of FTX’s demise. The cryptocurrency was trading at around $15,480, its lowest since November 11, 2020.