Another $90 Million Found Missing From FTX US

FTX debtors have identified $5.5 billion of liquid assets associated with both FTX and FTX US – and a substantial portion of it has gone up in smoke.  The latest update from the company states that $90 million in digital assets from the exchange “was subject to unauthorized third-party transfers post-petition.” FTX US Asset Shortfall […]

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Another $90 Million Found Missing From FTX US

Another $90 Million Found Missing From FTX US

FTX debtors have identified $5.5 billion of liquid assets associated with both FTX and FTX US – and a substantial portion of it has gone up in smoke. 

The latest update from the company states that $90 million in digital assets from the exchange “was subject to unauthorized third-party transfers post-petition.”

FTX US Asset Shortfall

FTX debtors unveiled details about its asset composition during a meeting with the  Official Committee of Unsecured Creditors (UCC) of FTX on Tuesday.

Its numbers indicate that the $5.5 billion identified is comprised of $1.7 billion in cash, $3.5 billion in crypto assets, and $0.3 billion of securities from both FTX and FTX US. 

“The FTX Debtors 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,” stated the company’s news release. 

The statement would contradict previous claims from disgraced former FTX boss Sam Bankman-Fried. The once-billionaire maintains that FTX US is a fully solvent entity that could immediately be reopened and that he only ever included it in the FTX Group’s bankruptcy filing due to outside pressure. 

However, FTX debtors stated that of the $181 million of digital assets identified in connection with FTX US, only $88 million worth is under the control of FTX debtors in cold storage. Another $3 million is pending transfer to cold storage – suggesting the other $90 million has gone up in flames. 

Where is the Money

“Cold storage” is when the keys controlling funds are disconnected from the internet and thus immune to hackers – some of whom apparently nabbed some of FTX’s funds post-bankruptcy. Bahamian authorities have claimed responsibility for some of these moved funds, though the Justice Department is still investigating details on the matter. 

By the FTX debtors’ account, the group currently holds $742 million of crypto assets in cold storage that are associated with FTX International, with another $121 million pending transfer. 

Furthermore, $426 million “was transferred to cold storage under the control of The Securities Commission of The Bahamas.” Another $323 million was “subject to unauthorized third-party transfers.”

“It has taken a Herculean investigative effort from our team to uncover this preliminary information,” said new FTX CEO John J. Ray III in the statement. “We ask our stakeholders to understand that this information is still preliminary and subject to change.”

The post Another $90 Million Found Missing From FTX US appeared first on Crypto Adventure.

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