The Hole on the FTX Balance Sheet Remains Gaping

The Breakdown

Blockworks

Investing, Business

4.8 • 786 Ratings

🗓️ 4 March 2023

⏱️ 16 minutes

🔗️ Recording | iTunes | RSS

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Summary

In this week's “Weekly Recap,” NLW looks at the latest from the FTX bankruptcy estate and stirrings that Democrats in Congress aren't fond of SEC Chair Gary Gensler's regulatory methods. Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW - “The Breakdown” is written, produced and narrated by Nathaniel Whittemore aka NLW, with editing by Michele Musso and research by Scott Hill. Jared Schwartz is our executive producer and our theme music is “Countdown” by Neon Beach. Music behind our sponsor today is “Foothill Blvd” by Sam Barsh. Image credit: Hermann Mueller/ Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8. Join the most important conversation in crypto and Web3 at Consensus 2023, happening April 26-28 in Austin, Texas. Come and immerse yourself in all that Web3, crypto, blockchain and the metaverse have to offer. Use code BREAKDOWN to get 15% off your pass. Visit consensus.coindesk.com.

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.2	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:15.3	The breakdown is produced and distributed by CoinDes.
0:20.3	What's going on, guys? It is Saturday, March 4th, and that means it's time for the weekly
0:24.5	recap. A quick note, before we dive into that, there are two ways to listen to the Breakdown
0:28.5	podcast. You can hear us on the Coin Desk Podcast Network feed, which comes out every afternoon
0:32.9	alongside other great Coin Desk shows, or you can listen on the breakdown-only feed, which comes out a few hours later in the evening. Wherever you're listening, if you're enjoying the show, I would so
0:41.3	appreciate it if you would take the time to leave a rating or a review. It makes a big difference.
0:46.8	All right, friends, happy Saturday. Let's catch up with some news we missed from earlier in the week.
0:52.7	And let's start with FTX. In a presentation filed in the
0:57.1	FTCS bankruptcy case on Thursday, bankruptcy lawyers said that the firm has a, quote, massive shortfall
1:02.3	in assets, amounting to $8.9 billion worth of customer funds. The presentation walked through
1:08.2	the assets recovered so far, stating that $2.2 billion in cash
1:11.7	and crypto have been identified in the wallets owned by FTX, valued at spot prices on the date of
1:16.6	bankruptcy. Of this, only $694 million was made up of what the bankruptcy estate is calling
1:21.8	Category A assets, which includes liquid assets including Fiat, stable coins, Bitcoin, Ethereum, and other liquid tokens.
1:29.7	Other assets include $385 million in payments due from customers, as well as a massive claim
1:34.5	against Alameda research. The presentation showed that Alameda had $9.3 billion in net borrowing
1:40.3	from FTX at the time of bankruptcy. Essentially, the entire shortfall is attributable
1:45.2	to loans made to Alameda. Although, of course, we're using the word loan very, very loosely.
1:51.5	FTX US also showed a shortfall in customer assets of around $116 million. The FTX US accounting
1:58.2	also showed that Alameda research was owed a net of $107 million from the U.S.
	...

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