This is what the balance sheet of the insolvent crypto exchange looks like

In the course of the bankruptcy of FTX – to date one of the largest crypto exchanges in the sector – the Financial Times has the balance sheet of the company sighted. The document is dated November 10 and is said to have been created by EX-CEO Sam Bankman-Fried.

In the overview what is seen is a breakdown of all liabilities to the alleged assets of the company. This provides information about a possible payment to creditors who could get at least part of their funds back after the insolvency proceedings have been completed. According to the crypto analysis platform Messari, even 40-50 percent of customer funds would be recoverable.

The FTX Fortune

In short: FTX is said to still hold around eight billion US dollars in customer funds on its books. On the other hand, there are around four billion in more or less liquid assets. Assuming that the securities and cryptos in the FTX books can be sold at a slight discount (discount), there is hope that the proceeds can be paid out to customers.

Securities from the RobinHood trading platform (50 percent written off) and US dollars make up the bulk of the liquid assets. These are followed by cryptos such as DAI, DOT or PAXG. They all together make up $622 million of total assets.

The balance sheet is further divided into “less liquid assets” and “entirely illiquid assets”. The former mostly includes tokens related to Solana (SOL). FTX was considered one of the biggest supporters of the Solana ecosystem. This is also reflected in the balance sheet of the partially liquid assets.

Frighteningly, however: According to Messari, 2.1 billion US dollars in serum DEX tokens (SRM) will probably be written off completely. This means that half of the less liquid assets are already eliminated. The roughly $550 million in FTX tokens (FTT) owned by the exchange are also likely to be written off completely, according to Messari, as the company is unlikely to post any more profits. Only 616 million US dollars can be saved from this part of the balance sheet.

The greatest potential for recovery is found in illiquid assets. However, it is unclear whether these investments were made by FTX-Ventures alone or in conjunction with Alameda Research, trading firm Sam Bankman Frieds. According to Messari’s conservative estimates, however, up to 2.8 billion US dollars could be saved in this area.

The position TRUMPLOSE raises questions at this point. Allegedly a $7 million bet by the company against re-election of then-US President Donald Trump. It testifies to the financial excesses of the trading platform, but should also contribute to liquidity.

liabilities

What was already clear: The biggest problem for FTX is the almost nine billion US dollar liabilities of the company. The vast majority ($8.4 billion) are customer deposits.

If Messari’s calculations are correct, the total assets of 4.1 billion US dollars, consisting of liquid, less liquid and illiquid capital, could cover almost half of the liabilities.

Sam Bankman-Fried protested in a series cryptic tweets the past few days that the customers of the exchange are the top priority. What his word is still worth after this disaster remains to be seen.

According to the Wall Street Journal, the ex-FTX CEO was at least busy over the weekend new funders to find for the huge balance hole. According to his own statements, he wants to try to pay off the damaged customers of his exchange.

Messari, however, assumes that existing assets will be paid out to damaged customers with priority. If it comes to that. Because the sector is still largely in the dark with regard to the insolvency proceedings of FTX. It is also not clear how truthful the company’s published balance sheet is or what sobering revelations are still waiting for customers. However, there is no harm in a little hope amidst the disastrous news of the past few days.