In this photo illustration a Bitcoin logo displayed on a smartphone with an FTX logo in the background.
Avishek The | Light Rocket | Getty Images
As of Nov. 20, FTX’s vast web of companies had a total of about $1.24 billion in cash balances, according to a new court submitted late Monday.
The filing was authored by Alvarez & Marsal North America, which is advising FTX on restructuring measures after the exchange filed for bankruptcy protection earlier this month.
Alvarez & Marsal North America managing director Edgar Mosley said FTX and his team managed to uncover “significantly higher levels of cash” than they were originally able to identify as of Nov. 16.
The balance sheets include FTX and its various “silos” ranging from trading group Alameda Research to international subsidiaries. The largest sum, $393.1 million, came from Alameda Research Ltd. The second largest balance is $303.4 million in LedgerX, a derivatives platform owned by FTX.
FTX’s Japanese unit, FTX Japan KK, has about $171.7 million in cash on its books, making it the third-biggest source of cash for the company. The cash is held by FTX and its subsidiaries with banks and other financial institutions, Mosley said in the filing.
The overall balance is well behind the billions FTX owes its creditors. A separate filing on Saturday said the company owed its top 50 unsecured creditors $3.1 billion.
It’s not clear how FTX will raise the money needed to fill this gap. Sam Bankman-Fried, the founder of FTX, is attempting to negotiate a multi-billion dollar deal with investors to save FTX even after being booted out of the company.
Bankman-Fried has been accused of blatant mismanagement and fraud by his industry peers.
John Ray III, his successor, gave a scathing account of FTX’s demise last week, saying in a filing that many of the FTX group companies “did not have adequate corporate governance.”
Ray is now trying to sell or restructure the global FTX group.
FTX’s new management is expected to appear before the Delaware bankruptcy court later Tuesday to detail the events that led to the cryptocurrency platform’s sudden collapse and the steps it has since taken to recover customer funds and other assets to back up.
Bitcoin fell to a two-year low on Tuesday as digital coins continued to reel from the aftermath of FTX’s downfall. The cryptocurrency traded at around $15,480, its lowest level since November 11, 2020.