The day before FTX.com filed for bankruptcy, Sam Bankman-Fried’s crypto-currency exchange had only $900 million in liquid assets against $9 billion in liabilities, according to documents received by the Financial Times.
The majority of those liquid assets, which were listed in an FTX balance sheet dated Thursday, consisted of $470 million in Robinhood stock held by a Bankman-Fried company that was not included in Friday’s bankruptcy filing, as well as 134 other companies.
The “Red Flag” for FTX customers
The document, which was made available to potential investors prior to the bankruptcy, paints a complete picture of the hole in the finances of the FTX crypto empire and warns that FTX users may suffer significant losses on the cash or crypto-currency assets they held on the exchange.
A not-so-great year for 2022
The FTX collapse was a major blow to the crypto-currency industry, which has already been hit hard by a number of corporate failures this year. Whether it was the Axie Infinity hack, the Terra LUNA debacle, the 3AC liquidation, or the Celsius bankruptcy, the crypto-currency market has seen one of the worst times of 2022.
The FTX debacle
Once a shining star of crypto, SBF quickly turned into an industry icon and inspiration to many. He built FTX, one of the most powerful crypto-currency exchanges to rival Binance and Coinbase. He gained even more notoriety when he helped rebuild SushiSwap, a Defi protocol, after its founder left the community without a trace.
However, with the collapse of FTX this week, Sam lost almost all of his fortune and especially user funds (locked into the exchange), making him one of the most hated men in the long list of crypto defaulters.
As previously reported, his exchange’s balance sheet has a $9 billion hole that Sam Bankman-Fried has not been able to fill, even after desperate attempts to strike deals with notable crypto-currency organizations and individuals.