The global digital asset industry dropped under the crucial $1 trillion market cap following the horrible collapse of the Sam Bankman-Fried (SBF) FTX. The crypto exchange collapsed due to a massive $8 billion liquidity crunch. However, FTX Ex CEO in an interview talked about the exact situation at that time.
In an interview with Bloomberg, SBF revealed a balance sheet that he showed investors at last minute bailout. The report mentions that he listed $8.9 billion in debt. While $9 billion were shown in liquid assets and $15.4 billion in less liquid assets. It added $3.2 billion in illiquid ones.
Meanwhile, SBF revealed a different spreadsheet that holds the actual truth of the exact situation at the time of the meeting. The sheet revealed the same kind of numbers. However, It showed $8 billion less liquid assets.
SBF stated that he miscounted the numbers. He stated that the customer used to wire money to Alameda Research instead of transferring it directly to FTX. As per his claim, FTX internal accounting system double counted this amount which was later credited to both exchanges.
SBF mentioned that Alameda and FTX had the biggest cash flows. However, Binance, a rival to FTX turned out to be the biggest expense. A net $2.5 billion was paid to them to buy out the investments.
He listed around $250 million for real estate and around $1.5 billion went in expenses. Venture capital investments saw a figure of $4 billion and $1.5 billion for acquisitions. Surprisingly $1 billion was written off as “fuckups”.
Cyber Hornet has filed with the U.S. Securities and Exchange Commission (SEC) to launch a…
Tether Holdings is preparing for one of its biggest funding rounds, with two global investors…
Kraken raised $500 million, increasing its valuation to $15 billion, setting the stage for a…
Crypto exchange Bybit has announced its listing of Ripple's RLUSD amid the stablecoin's growing adoption.…
The world's largest interbank messaging network SWIFT has selected Ethereum layer 2 platform Linea to…
The August U.S. PCE inflation data has dropped in line with expectations, although it suggests…