FTX identifies $5.5 billion of liquid assets; confirms shortfalls at exchanges

By Sarah Lizee

Olympia, Wash., Jan. 17 – FTX Trading Ltd. announced that about $5.5 billion of liquid assets have been identified in its asset recovery process, comprised of $1.7 billion of cash, $3.5 billion of crypto assets and $300 million of securities.

FTX also confirmed that, based on current estimates of the amount of digital assets associated with the FTX.com and FTX US exchanges as of the petition date, there is a substantial shortfall of digital assets at both exchanges.

With respect to FTX.com, the FTX debtors have identified about $1.6 billion of digital assets associated with FTX.com as of the petition date, $323 million of which was subject to unauthorized third-party transfers post-petition, $426 million of which was transferred to cold storage under the control of the Securities Commission of the Bahamas, $742 million of which is in cold storage under the control of the FTX debtors, and $121 million of which is pending transfer to cold storage under the control of the FTX debtors.

The assets identified as of the petition date are substantially less than the total third-party customer balances suggested by the electronic ledger for FTX.com, the company said in a press release.

With respect to the FTX US exchange, the FTX debtors have identified about $181 million of digital assets associated with FTX US as of the petition date, $90 million of which was subject to unauthorized third-party transfers post-petition, $88 million of which is in cold storage under the control of the FTX debtors, and $3 million of which is pending transfer to cold storage under the control of the FTX debtors.

Likewise, the assets identified as of the petition date are substantially less than the total third-party customer balances suggested by the electronic ledger for FTX US.

FTX said the debtors continue to attempt to secure assets that may be associated with the exchanges and to trace digital assets back to the exchanges wherever possible.

“We are making important progress in our efforts to maximize recoveries, and it has taken a Herculean investigative effort from our team to uncover this preliminary information,” John J. Ray III, the chief executive officer and chief restructuring officer of the FTX debtors, said in the release.

“We ask our stakeholders to understand that this information is still preliminary and subject to change. We will provide additional information as soon as we are able to do so.”

FTX has headquarters in The Bahamas. The company filed Chapter 11 bankruptcy on Nov. 11 under case number 22-11068.

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