{"id":70028,"date":"2022-11-14T14:08:08","date_gmt":"2022-11-14T12:08:08","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=70028"},"modified":"2025-09-07T23:39:37","modified_gmt":"2025-09-07T20:39:37","slug":"bloomberg-says-customer-recovery-of-ftx-funds-unlikely","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bloomberg-says-customer-recovery-of-ftx-funds-unlikely\/","title":{"rendered":"Bloomberg says customer recovery of FTX funds unlikely"},"content":{"rendered":"<p>FTX&#8217;s liquid asset reserves are only $900 million, while its liabilities are estimated at about $9 billion. This follows from an investor presentation prepared by the cryptocurrency exchange before filing for bankruptcy, writes<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-11-13\/ftx-s-balance-sheet-hack-paint-dim-picture-for-user-recovery\"> Bloomberg<\/a>.<\/p>\n<p>According to the document, $3.2 billion was held in illiquid assets, $5.5 billion \u2014 in less liquid assets.<\/p>\n<p>Bloomberg also noted an unauthorized withdrawal of assets from<a href=\"https:\/\/u1f987.com\/en\/news\/unknown-actors-moved-more-than-400-million-from-ftx-wallets\"> platform amounting to $477 million<\/a>, according to Elliptic. This will also affect the size of the potential amount of funds subject to restitution to customers.<\/p>\n<p>The report also mentioned a -$8 billion on a \u201chidden, poorly marked\u201d fiat account and withdrawals by users of $5 billion as of November 6.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p><em>\u201cThere were many things I would have done differently. The biggest \u2014 a poorly indicated internal bank account and the size of withdrawals by customers during the bank examination,\u201d<\/em> \u2014 says in the explanatory note.<\/p>\n<\/blockquote>\n<p>According to the agency&#8217;s source, the balance sheet is incomplete and lacks detail.<\/p>\n<p>FTX&#8217;s assets consisted of:<\/p>\n<ul class=\\\"wp-block-list\\\">\n<li>SRM \u2014 valued at $2.2 billion;<\/li>\n<li>SOL \u2014 $982 million;<\/li>\n<li>MAPS \u2014 $616 million;<\/li>\n<li>FTT \u2014 $554 million;<\/li>\n<li>Robinhood shares \u2014 $472 million.<\/li>\n<\/ul>\n<p>Journalists noted that in the following days the token prices fell sharply.<\/p>\n<p>Robinhood shares rose, but they sit on Emergent Fidelity&#8217;s balance sheet. The firm did not appear on the list<a href=\"https:\/\/u1f987.com\/en\/news\/ftx-group-files-for-bankruptcy-sam-bankman-fried-resigns-as-ceo\"> of Chapter 11 bankruptcy filings by 11 entities linked to FTX head Sam Bankman-Fried<\/a>.<\/p>\n<p>Ming Zhao, formerly at Point72 Ventures, explained that FTX customers would stand third in line to receive funds after senior creditors and platform employees. This could take from 6 to 24 months.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-conversation=\\\"none\\\">\n<p dir=\\\"ltr\\\" lang=\\\"en\\\">5\/ What about FTX customers? What about VCs?<\/p>\n<p>Do they get paid before or after all other FTX creditors?<\/p>\n<p>Short story is it\u2019s yet unclear but most likely:<br \/>\u2014 first all the senior corporate creditors get paid<br \/>\u2014 then FTX employees<br \/>\u2014 then FTX customers<br \/>\u2014 then VCs<br \/>\u2014 then the founders<\/p>\n<p>\u2014 Ming Zhao (@FabiusMercurius) <a href=\\\"https:\/\/twitter.com\/FabiusMercurius\/status\/1591482513167626240?ref_src=twsrc%5Etfw\\\">November 12, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>Under Chapter 11 the business may continue operating and have a chance at restoring solvency. However, the process will take time and money.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-conversation=\\\"none\\\">\n<p dir=\\\"ltr\\\" lang=\\\"en\\\">7\/ Pros &#038; Cons of Chapter 11<\/p>\n<p>Most companies first try to emerge from 11 alive.<br \/>If they fail, they resort to 7.<\/p>\n<p>Pros:<br \/>\u2014 business can continue to operate during process<br \/>\u2014 possible 2nd chance<br \/>\u2014 creditors must stop harassing execs during \u00abautomatic stay\u00bb period<\/p>\n<p>Cons:<br \/>\u2014 time<br \/>\u2014 cost<\/p>\n<p>\u2014 Ming Zhao (@FabiusMercurius) <a href=\\\"https:\/\/twitter.com\/FabiusMercurius\/status\/1591482523636596736?ref_src=twsrc%5Etfw\\\">November 12, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>As reported in Bloomberg and WSJ, there was an $8 billion hole in FTX&#8217;s balance sheet<a href=\"https:\/\/u1f987.com\/en\/news\/bloomberg-and-wsj-report-an-8-billion-hole-in-ftx-balance-sheet\">. Reuters quoted a larger figure \u2014 <a href=\"https:\/\/u1f987.com\/en\/news\/tether-freezes-46-37-million-usdt-held-for-ftx-at-authorities-request\">$9.4 billion<\/a>.<\/p>\n<p>Insider sources at The Wall Street Journal said Bankman-Fried<a href=\"https:\/\/u1f987.com\/en\/news\/media-sam-bankman-fried-acknowledged-alameda-researchs-10-billion-debt-to-ftx\"> acknowledged<\/a> a debt of Alameda Research to FTX amounting to $10 billion.<\/p>\n<p> Read ForkLog&#8217;s bitcoin news on our <a href=\\\"\/\/telegram.me\/forklog\\\"\u201d target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FTX&#8217;s liquid asset reserves are only $900 million, while its liabilities are estimated at about $9 billion. This follows from an investor presentation prepared by the cryptocurrency exchange before filing for bankruptcy, Bloomberg reports.<\/p>\n","protected":false},"author":1,"featured_media":70029,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1162,1236,1138],"class_list":["post-70028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-ftx","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"29","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=70028"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70028\/revisions"}],"predecessor-version":[{"id":70030,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/70028\/revisions\/70030"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/70029"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=70028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=70028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=70028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}