The day before FTX.com filed for bankruptcy, Sam Bankman-primary Fried’s international crypto exchange had just $900 million in liquid assets versus $9 billion in liabilities, according to investment documents received by FT.
The majority of those liquid assets, which were included on an international balance sheet dated Thursday, comprised of $470 million in Robinhood shares owned by a Bankman-Fried corporation that wasn’t included in the bankruptcy filing on Friday, along with other 134 corporate entities.
Red Flags For FTX Users Worldwide
The document, which was made available to potential investors prior to the bankruptcy, paints a thorough picture of the hole in the FTX crypto empire’s finances and warns that users of FTX international may suffer significant losses on whatever cash or cryptocurrency assets they owned on the exchange.
A Not-So-Happening 2022
The collapse of FTX has dealt a severe blow to the cryptocurrency industry, which has already been hit hard by a number of corporate failures this year. Be it the Axie Infinity hack, Terra LUNA debacle, 3AC liquidation, or Celsius bankruptcy — the crypto market has seen one of the worst times in 2022.
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The FTX Debacle
Crypto’s once-shining knight, rapidly transformed into an industry icon and inspiration for many. He built FTX, one of the most powerful crypto exchanges to rival the likes of BINANCE and Coinbase. He earned more fame and honor when he helped in re-building SushiSwap, a Defi protocol, after its founder left the community without a trace.
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However, with FTX’s collapse this week, Sam lost almost all his fortune and moreover user funds (locked in the exchange), thus making him one of the most hated men in the long list of defaulters in crypto.
As reported earlier, his exchange bears a $9 Billion hole in its balance sheet which Sam has failed to meet, even after dire attempts to ink deals with noteworthy crypto organizations and individuals.
