FTX Owns Crypto Worth Just $659,000, Files For Bankruptcy

• Bankruptcy filings show that the fair value of cryptocurrencies held by FTX is $659,000.
• That compares to Sam Bankman-Fried’s claim that FTX holds about $5.5 billion in “less liquid” crypto tokens.
• “Never in my career have I seen such a complete failure of corporate controls,” said FTX CEO John Ray III.

The FTX Chapter 11 bankruptcy It sheds new light on how bad the cryptocurrency exchange’s internal controls have been to date It exploded in amazing fashion last week.

A particularly contrasting revelation is that the total fair value of cryptocurrencies held by FTX International was just $659,000 at the end of September, compared to founder Sam Bankman-Fried’s claims that the company held $5.5 billion in “less liquid” crypto tokens.

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as happened here,” said FTX’s new CEO, John Ray III, who oversees the company. Liquidation of the companyHe said.

That’s the statement from Ray, given that he oversaw the liquidation of Enron after it went bankrupt of more than $60 billion in 2001.

There was evidence the inside numbers would be shocking, given that FTX founder Sam Bankman-Fried has warned several tweet storms about FTX’s finances as “rough” and “to the best of my knowledge” and “handle all these numbers the rough.” “.

FTX’s total assets as of Sept. 30 were about $2.2 billion, according to the bankruptcy filing, though it’s unclear how different those numbers are today given the exchange’s recent run and high-profile hacks last week.

Another example of how unprecedented the situation is involves the fact that Alameda Research, the Bankman-Fried-managed crypto hedge fund that It used customer deposits from FTX to plug its losing hole, Bankman-Fried was given a $1 billion loan before she went bankrupt.

“From the integrity of compromised systems and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, inexperienced and potentially vulnerable individuals, this situation is unprecedented,” Ray said.