After Sam Bankman-cryptocurrency Fried’s exchange FTX went under, the entire crypto market suffered from numerous losses and asset devaluations. Additionally, FTX-exposed crypto businesses received a fair portion of the unpleasant pill.
The $8 billion gap in FTX’s balance sheet that resulted in the liquidity crisis has been the subject of continuing investigations.
The balance sheet deficit for FTX kept expanding. The company initially stated merely $2 billion before subsequently stating $5 billion. The gap has now widened to more than $8 billion.
The monies’ locations were disclosed by Sam Bankman-Fried (SBF), the former CEO of FTX, in a recent Bloomberg interview. SBF said that during an urgent bailout, he displayed a different balance sheet to investors.
The study states that SBF listed $15.4 billion in less liquid assets, $9 billion in liquid assets, and $8.9 billion in debt. Illiquid assets worth $3.2 billion were also highlighted in the report.
Another balance sheet, displaying the true circumstances at the time of the bailout meeting, was made public by him. Similar figures are on the balance sheet, but there are $8 billion fewer liquid assets. SBF claimed that he misquoted the figures.
Customers were sending money to Alameda Research rather than sending it directly to FTX, he continued. He claimed that the sum had been double tallied by FTX’s internal audit system and attributed to both businesses.
Following SBF’s statement, the biggest cash flow was generated by FTX and Alameda Research, while Binance, a competitor, became the highest expense. He spent a total of $2.5 billion to acquire Binance’s holdings. SBF also disclosed that he spent around $1.5 billion on other expenses and $250 million on real estate.
They counted $1 billion incorrectly while investing $4 and $1.5 billion in venture financing to buy other companies.
Customers were sending money to Alameda Research rather than sending it directly to FTX, he continued. He claimed that the sum had been double tallied by FTX’s internal audit system and attributed to both businesses.
Following SBF’s statement, the biggest cash flow was generated by FTX and Alameda Research, while Binance, a competitor, became the highest expense. He spent a total of $2.5 billion to acquire Binance’s holdings. SBF also disclosed that he spent around $1.5 billion on other expenses and $250 million on real estate.
They counted $1 billion incorrectly while investing $4 and $1.5 billion in venture financing to buy other companies.
The FTX situation, according to the majority of those in the cryptocurrency industry, is a deception and not a coincidence. In his first public outing following the demise of FTX, Bankman-Fried asserted that he did not commit fraud on Wednesday. He asserted that he was ignorant of the severity of the damage and the state of FTX.
SBF blamed bad accounting and management problems for the $32 billion FTX exchange’s demise in an interview with The New York Times. Both civil and criminal investigations were sparked by this comment. The purpose of the investigation is to ascertain whether FTX violated any laws by lending money from its clients to AlamedaÂ
