FTX CEO cites a ‘substantial capital shortfall’ at the platform

At present, it is not possible to accurately calculate or model the size of compensation for FTX clients’ losses. This was stated by John Ray, the CEO of the platform through the bankruptcy proceedings, according to The Block.

According to the updated presentation, as of March 1, the assets on accounts related to FTX.com total $2.2 billion. Of these, only $694 million meet the status of high-quality and liquid assets — cash, stablecoins, Bitcoin and Ethereum.

Other assets include customer receivables of $385 million, as well as claims against Alameda Research and related parties. The market maker borrowed a total of $9.3 billion in fiat and cryptocurrencies.

Capital shortfalls have also been recorded at FTX US. Total assets on the wallets of the U.S. unit are estimated at $191 million, customer receivables at $28 million, and the same figure for related parties at $155 million. Alameda Research’s debt to the exchange stands at $107 million.

“Exchange assets were heavily mixed, and their accounting books and reports are incomplete and in many cases completely absent. As a result, the data presented are still provisional,” Ray said.

For compensation payouts, the FTX stakeholder group identified customer liabilities totaling $7 billion in fiat and stablecoins, as well as assets of $580 million.

Under the new calculations, the group’s asset valuation was $384 million higher than previously reported.

According to court filings, list of creditors for the exchange runs to more than 100 pages. The list includes a number of government agencies from various countries, technology companies, airlines and hotel operators.

Earlier, the FTX Group sent closed letters to politicians demanding the return of donations previously received from former chief executive Sam Bankman-Fried.

In February 2023, a court approved the sale of the platform’s low-value assets.