Bankrupt cryptocurrency exchange FTX has revealed a "massive shortfall" in its digital asset and fiat currency holdings with billions worth of customer funds missing from both the exchange and its United States-based arm, FTX US.
On Mar. 2 the exchange released a presentation showing FTX had $2.2 billion in exchange wallets and fiat accounts of which $694 million consisted of the most liquid "Category A Assets" that include cash, stablecoins, Bitcoin (BTC) and Ether (ETH) priced at the latest spot prices.
Only $191 million of total assets were located in the wallets of the accounts associated with FTX US, in addition to $28 million of customer receivables and $155 million of related party receivables.
FTX wallets showed a $9.3 billion net borrowing by the exchanges sister trading firm Alameda Research and a $107 million net payable to Alameda from FTX US.
FTX recorded surpluses across its less liquid "Category B Assets" that included its own FTX Token (FTT) but the holdings are insignificant compared to the deficits on its other held assets.
In total FTX recorded an $8.6 billion deficit across all wallets and accounts while FTX US recorded a deficit of $116 million.
Related: FTX Japan allows total withdrawal of funds — users rejoice the ‘escape’
John J. Ray III, the chief restructuring officer and CEO of FTX, said in a Mar. 2 statement the presentation is the second in a "series" as it continues to "uncover the facts of this situation" and added:
On Feb 28, former FTX engineering director, Nishad Singh pleaded guilty to charges of wire fraud along with wire and commodities fraud conspiracy.
Singh’s plea follows a number of Bankman-Fried's close associates reportedly agreeing to cooperate with U.S. prosecutors in recent
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