The combined net asset value of FTX and Alameda Research is estimated at $1 billion, while liabilities run to $8 billion. This was disclosed by former CEO Sam Bankman-Fried.
17) I know you’ve all seen this, but here’s where things stand today, roughly speaking. [LOTS OF CAVEATS, ETC.]
Liquid: -$8b
Semi: +$5.5b
Illiquid: +$3.5bAnd yeah, maybe that $9b illiquid M2M isn’t worth $9b (+$1b net).
OTOH—a month ago it was worth $18b; +$10b net.
—
— SBF (@SBF_FTX) November 16, 2022
He said the two structures jointly held $5.5 billion on their books in partially liquid assets and $3.5 billion in illiquid assets. The former CEO stressed that they were previously valued at $18 billion with a net worth of $10 billion.
Earlier, Bloomberg and The Wall Street Journal reported an $8 billion hole in FTX’s balance sheet.
Bankman-Fried said that Alameda Research’s fair value exceeded its liabilities, but the firm had a margin position on FTX. He also noted that the exchange’s U.S. unit had sufficient funds to reimburse all customers.
12) To the best of my knowledge, as of post-11/7, with the potential for errors:
a) Alameda had more assets than liabilities M2M (but not liquid!)
b) Alameda had margin position on FTX Intl
c) FTX US had enough to repay all customersNot everyone necessarily agrees with this
— SBF (@SBF_FTX) November 15, 2022
«A few weeks ago, FTX was processing around $10 billion in trading volume and billions in transfers. But the margin was too large — more than I expected. bank run and the market crash drained liquidity», he wrote.
The former CEO also said he would try to “increase liquidity, return [assets] to customers, and relaunch” the business.
On November 15, reporters for the WSJ reported that Bankman-Fried planned to raise financing despite FTX’s bankruptcy filing. According to the publication’s sources, the funds would be directed toward compensating users.
As disclosed in the operator’s documents, the platform has more than a million creditors.
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