FTX filed for Chapter 11 bankruptcy on November 11, sparking intense speculation about the company’s financial health.
A number of allegations surfaced during this time period that suggested FTX’s top brass was in over its head.These include criminals Improper management of user fundstrading sector Alameda preferential treatment, including “insider information” previous run a list of tokens, and relief Regarding significant trading losses on complex Ponzi involving FTT tokens.
Those who trust FTX have their funds locked on the platform. However, bankruptcy proceedings require a thorough evaluation of assets and liabilities, and users are unsecured creditors, possibly to the end.
In light of the circumstances, a former employee of Blockchain.com @mandrick The speculated bankruptcy proceedings could be closed within six years, by which time users “will be lucky enough to get their pennies back for a dollar.”
however, Messari It is estimated that up to 50% of user assets are recoverable.
FTX users can get half of their funds back
Messari Research Analyst Kunal Goel Using “rough balance sheet” data from the Financial Times, it states that estimated users can receive between 40% and 50% of their deposits, meaning “not all is lost.”
Goel’s breakdown shows liquid assets of $622 million, “illiquid assets” of $616 million and illiquid assets of $2.87 billion. The total fair value of the assets is $4,109 million. After deducting bankruptcy costs, including attorney fees, by 20%, the net value of the assets is $3,287 million.
Meanwhile, liabilities consist of customer deposits of $8.399 billion and “other” liabilities of $460 million, bringing total liabilities to $8.859 billion.
The ratio of total assets to customer deposits is equal to 0.49 and the more realistic ratio of net assets to customer deposits is 0.39.
Goel pointed out that the wallet hack, in which hackers stole $477 million, took a huge toll on users’ collection of funds. However, the numbers above (held in illiquid assets) exclude exploited funds.
Sam Bankman-Fried Speaks
Noticing a series of bizarre tweets, former FTX CEO Sam Bankman-Fried (SBF) began posting more consistent messages starting November 15th.
SBF said it wants to “do the right thing for its customers” rather than its investors. He added that we are actively working with regulators and staff to achieve this goal.
13) My goal, my one goal, is to do the right thing for my customers.
I am contributing as much as I can to that end. I meet directly with regulators and work with my team to do what we can for our customers.
Then an investor. But first, the customer.
—SBF (@SBF_FTX) November 15, 2022
In a now-deleted tweet, SBF made a number of statements on record that were later found to be false.FTX is good,” When FTX US is a solvent.
As such, social media commentary was overwhelmingly skeptical of its intent to “do the right thing on the customer’s part.”
SBFMore His efforts may not pay off, but he continued the thread, saying, “All I can do is try.”
binance reported that SBF is trying to attract investors to raise funds. However, so far his efforts have been reported to be fruitless.
