FTX informs committee of $6.8 billion balance sheet hole at four units

By Sarah Lizee

Olympia, Wash., March 17 – FTX Trading Ltd. gave another presentation to the official committee of unsecured creditors summarizing the debtors’ financials at the time they filed bankruptcy, according to a press release issued Friday.

This is the third in a series of presentations FTX plans to deliver to the committee as it continues to uncover facts about the debtors’ financial state. The process has been drawn out as the debtors’ assets were highly commingled and their books were incomplete, and in some cases, completely absent.

Friday’s presentation shows that West Realm Shires, FTX.com, Alameda Research and FTX Ventures together had $11.58 billion of estimated scheduled claims against $4.78 billion of scheduled assets.

FTX said there are a number of different undetermined assets and claims, a majority of which relate to crypto holdings, investments, loan receivables, intellectual property, customer entitlements and loan payables. These are still under review.

As previously reported, the company’s schedules and statements describe $3.2 billion in payments and loans to founders, chiefly from Alameda Research, including approximately: $2.2 billion to Sam Bankman-Fried; $587 million to Nishad Singh; $246 million to Zixiao “Gary” Wang; $87 million to Ryan Salame; $25 million to John Samuel Trabucco and $6 million to Caroline Ellison.

The above amounts exclude over $240 million spent to purchase luxury property in the Bahamas, political and charitable donations made directly by the FTX debtors, and substantial transfers to non-debtor subsidiaries in the Bahamas and other jurisdictions.

Although some of the property purchased with the proceeds of these transfers is already in the control of the FTX debtors or governmental authorities with whom the FTX debtors are cooperating, the amount and timing of eventual monetary recoveries cannot be predicted at this time. The FTX debtors are investigating causes of action against the recipients of these transfers and their subsequent transferees.

Ongoing efforts by the FTX debtors are expected to result in the further identification of assets, liabilities and transfers, including a description of intercompany claims among the FTX debtors and their subsidiaries.

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

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