Court documents show that Sam Bankman-crumbling Fried’s group of companies has only $1.2 billion in cash as of November 20. This is much less than the $3.1 billion it owes its top 50 creditors.
According to a document filed Monday by Alvarez & Marsal North America, FTX’s proposed financial advisor, about $751 million is held by debtor entities and the other $488 million is held by non-debtor entities.
About $514 million is unrestricted cash, $260 million is custodial cash, and $465 million is restricted cash, which can only be used for specific things like loan payments and can’t be used for general business purposes.
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In the past couple of weeks, the crypto exchange FTX has fallen from favor after CoinDesk revealed that a big part of sister company Alameda Research’s assets were the exchange’s tokens.
The exchange filed for Chapter 11 bankruptcy in U.S. courts on November 11, but it did so in a confusing way that made it look like some companies that were part of the FTX were also filing for bankruptcy. According to another court filing, it may have more than a million creditors and owes the 50 biggest ones about $3.1 billion.
(1/2) Exchanges should be aware that certain funds transferred from FTX Global and related debtors without authorization on 11/11/22 are being transferred to them through intermediate wallets.
— FTX (@FTX_Official) November 20, 2022
Alameda Research has the most cash on hand of all the different entities, at $393 million. FTX Japan has the most cash on hand of firms under the FTX silo, at $171 million. The Japanese cryptocurrency exchange is said to be getting ready to allow withdrawals again by the end of the year.
Another filing showed the complicated corporate structure of SBF’s 100 or so companies, of which he was the majority owner of most. The document said that FTX’s parent company was in Antigua, not the Bahamas, where the exchange said its headquarters were.
Wowsers! Crypto is an even bigger mystery to me now. FTX Owes Its 50 Biggest Unsecured Creditors More Than $3 Billion https://t.co/rHkADSM8jx
— Lucy Turnbull AO💉 (@LucyTurnbull_AO) November 21, 2022
The disgraced exchange has also been criticized by its new CEO, John J. Ray III, who was in charge of companies like Enron when they had financial scandals. Ray pointed out that the senior managers didn’t keep good records and didn’t have enough experience. He also pointed out that company money was used to buy real estate in the Bahamas.
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