• FTX cryptocurrency exchange has revealed a massive shortfall in crypto and fiat currency holdings, with billions of customer funds missing from both the exchange and its US subsidiary.
• Documents show that FTX had $2.2 billion in exchange wallets and fiat accounts, but only $694 million of these assets were in the most liquid form.
• The exchange’s net deficit was $8.6 billion, which is likely due to Alameda Research borrowing around $9.3 billion from customer accounts without proper record-keeping or oversight.

$8.9 Billion Customer Funds Missing From FTX Exchange

Cryptocurrency exchange FTX has revealed a „massive shortfall“ in crypto and fiat currency holdings, with billions of customer funds missing from both FTX and its US subsidiary FTX US. Documents show that FTX had $2.2 billion in exchange wallets and fiat accounts, but only $694 million of these assets were in the most liquid form – leading to an overall net deficit of $8.6 billion.

John J Ray III: Incomplete & Absent Records

John J Ray III, who is currently the chief restructuring officer and CEO of FTX, said books and records are incomplete or totally absent – indicating that former management likely did not properly track their assets nor take necessary precautions to ensure customers‘ funds were safe from potential losses or theft. This lack of oversight is believed to be connected to Alameda Research borrowing around $9.3 billion from customer accounts before filing for bankruptcy earlier this year – significantly more than what was held in liquid assets by the company at the time ($694 million).

FTT Token Trading Above Zero

Despite all the turmoil surrounding FTX recently, its native token (FTT) still trades above zero at currently at around 1$. The collapse of the exchange has certainly rocked the entire cryptocurrency space as well as many major players who formerly backed Sam Bankman-Fried’s empire – including Wall Street’s Anthony Scaramucci who invested heavily into it prior to its demise last month.

The Best Way To Maximize Recoveries For Former Customers

In order to maximize recoveries for former customers affected by this situation, a transparent bankruptcy proceeding is needed which can help provide clarity on how much money can actually be recovered by those impacted by this debacle moving forward..

Sam Bankman-Fried: Crypto’s Fallen Hero?

For more details about Sam Bankman-Fried’s crypto empire as well as his prominent ex-backers from Wall Street such as Anthony Scaramucci – read our deep dive article here: Sam Bankman-Fried: Crypto’s Fallen Hero?