FTX allegedly only had $900 million in liquid assets, backing $8.9 billion in debt.
According to the report of the Financial Times, the bankrupt stock market has much less liquid assets than it should be.
FTX’s Liquid Assets Revealed
Citing the FT’s investment materials, the company’s most easily sellable assets were the $470 million Robinhood stock, owned by Sam Bankman-Fried.
Although the company is officially headquartered outside the United States, $5.1 billion of debt was in US dollars.
The bankruptcy of the huge stock market caused the crypto money markets to go into an extremely deep crisis. Assets owned by Alameda Research, FTX’s sister firm, took action earlier in the day. Many assets associated with the firm network have been withdrawn from accounts.
Given the huge gap in FTX’s balance sheet, as well as the history of crypto exchange failures that have blocked user deposits, creditors are faced with an uncertain future.