{"id":18879,"date":"2023-03-18T15:10:13","date_gmt":"2023-03-18T15:10:13","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ftx-debtors-reveal-6-8-billion-hole-in-balance-sheet-amidst-financial-discrepancies-and-payments-to-insiders-bitcoin-news\/"},"modified":"2023-03-18T15:10:13","modified_gmt":"2023-03-18T15:10:13","slug":"ftx-debtors-reveal-6-8-billion-hole-in-balance-sheet-amidst-financial-discrepancies-and-payments-to-insiders-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ftx-debtors-reveal-6-8-billion-hole-in-balance-sheet-amidst-financial-discrepancies-and-payments-to-insiders-bitcoin-news\/","title":{"rendered":"FTX Debtors Reveal $6.8 Billion Hole in Balance Sheet Amidst Financial Discrepancies and Payments to Insiders \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to a presentation recently submitted by the FTX debtors on March 16, Sam Bankman-Fried\u2019s companies had a $6.8 billion hole in their intercompany balance sheet when they filed for Chapter 11 bankruptcy protection. FTX and its conglomerate of firms have debts of around $11.6 billion, including customer claims and various other liabilities.<\/strong><\/p>\n

FTX\u2019s $6.8 Billion Gap<\/h2>\n

The FTX debtors have released a third presentation that provides an overview of FTX\u2019s debts and liabilities. The presentation reveals that, while a significant amount of money is owed to customers, FTX and its few subsidiary firms also owe funds to certain vendors, counterparties, and unpaid invoices. Some of the vendors include Margaritaville Beach Resort owned by Jimmy Buffett, Amazon Web Services (AWS), Fairview Asset Management, Stripe, Meta, Trulioo, Spotify, Turner Network Television, and American Express.<\/p>\n

Advisers concluded that when FTX filed for bankruptcy, the more than 100 companies under its umbrella had a $6.8 billion gap in their balance sheet. Approximately $4.8 billion of this amount is against a colossal $11.6 billion, according to the presentation. FTX US had a shortfall of about $87 million, despite Bankman Fried\u2019s repeated claims that the U.S. subsidiary was solvent. The disgraced FTX co-founder\u2019s quantitative trading firm, Alameda Research, held the \u201cvast majority of third-party loans,\u201d according to the advisers\u2019 notes.<\/p>\n

\"FTX<\/p>\n

Alameda had an interesting relationship with many entities and protocols, as it borrowed from \u201capproximately 80 different counterparties.\u201d Furthermore, much of the collateral was based in FTT, SRM, and SOL, and crypto asset volatility \u201cresulted in many lenders issuing margin calls and call notices.\u201d FTX debtors reviewed internal communications, onchain activity, and loan documents and discovered that loans were not recorded in FTX\u2019s historical accounting records. \u201cAdditional tracing of wallet and blockchain activity remains an ongoing matter,\u201d the advisers explained.<\/p>\n

Forty-nine companies are ghost towns, identified as \u201cdormant\u201d because they have no historical payments or financial information. Advisers say nine FTX entities provided their payment records directly, and 12 FTX entities in Europe and Asia did the same. About 30 of the FTX entities used Quickbooks to keep operational books and records. Regarding political donations, \u201cpayments identified on [Federal Election Commission] website that were not classified as donations on the debtors\u2019 books and records,\u201d the presentation notes.<\/p>\n

Additionally, a page called \u201cpayments to insiders\u201d shows Bankman-Fried was paid roughly $2.247 billion. Former FTX director of engineering Nishad Singh reportedly received $587 million, and FTX co-founder Gary Wang earned $246 million. Former FTX co-CEO Ryan Salame allegedly received $87 million, and Sam Trabucco made $25 million, according to FTX debtors. The former Alameda CEO, Caroline Ellison, received $6 million in payments and loans, as detailed in the payments to insiders spreadsheet.<\/p>\n

\"FTX<\/p>\n

Overall, FTX debtors discovered major financial and accounting discrepancies within the company, along with substantial payments made to insiders. The situation is opaque, but it\u2019s evident that FTX\u2019s financial problems are more extensive than initially reported. The presentation notes that the financial data was not audited and is subject to change as the bankruptcy proceedings continue.<\/p>\n

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\nTags in this story
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$6.8 Billion<\/a>, accounting discrepancies<\/a>, Alameda Research<\/a>, Amazon Web Services<\/a>, american express<\/a>, AWS<\/a>, Bankruptcy<\/a>, conglomerate<\/a>, counterparties<\/a>, Cryptocurrency<\/a>, debt<\/a>, debts<\/a>, Fairview Asset Management<\/a>, financial discrepancies<\/a>, ftx<\/a>, insiders<\/a>, Jimmy Buffett<\/a>, liabilities<\/a>, Margaritaville Beach Resort<\/a>, Meta<\/a>, Payments<\/a>, political donations<\/a>, quantitative trading<\/a>, Quickbooks<\/a>, Sam Bankman-Fried<\/a>, Spotify<\/a>, Stripe<\/a>, third-party loans<\/a>, Trulioo<\/a>, Turner Network Television<\/a>, unpaid invoices<\/a>, Vendors<\/a><\/div>\n<\/div>\n

What do you think this means for the future of FTX and its subsidiaries? Share your thoughts and insights in the comments below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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