FTX Unveils Major Shortfall of Customer Funds

• FTX revealed a “massive shortfall” in crypto and fiat currency holdings.
• Billions in customer funds are missing from both FTX and its US subsidiary, FTX US.
• Alameda Research reportedly borrowed around $9.3 billion from customer accounts before the bankruptcy.

Liquid Assets Fall Significantly Short

FTX only had $694 million in liquid assets and a massive net deficit of $8.6 billion on its balance sheet. The exchange’s sister trading firm, Alameda Research, had allegedly borrowed around $9.3 billion from customer accounts prior to the bankruptcy, leaving only $475 million in cash in its accounts as of Jan 31st. This has left many customers with significant losses that may not be recoverable due to the lack of complete records or books available for review.

Chief Restructuring Officer Investigating

John J Ray III, who was formerly responsible for restructuring Enron, is now the chief restructuring officer and CEO of FTX. He has stated that the books and records are incomplete or totally absent which has made it difficult to ascertain exactly how much money is still available to customers who have incurred losses through no fault of their own. Despite this, he is continuing to work on uncovering all facts relating to this situation and ensuring that a transparent bankruptcy proceeding takes place so that customers can maximize their potential for recovering funds owed to them.

Impact On Crypto Space

The collapse of FTX has caused shockwaves throughout the entire crypto space with several major firms being affected by the fallout from this incident. Anthony Scaramucci—who was previously connected to Sam Bankman-Fried—was one such individual who was negatively impacted by this incident which serves as a harsh reminder about the risks associated with investing in cryptocurrency related companies or products.


It remains unclear how much money will be able to be recovered by former customers due to the lack of clear records or books available for review but it is important that those affected have access to all relevant information so that they can make an informed decision about what action they should take moving forward regarding any funds still owed to them by FTX or its subsidiaries.

Von admin