FTX Trading’s Liabilities Dwarfed Liquid Assets, FT Says

 
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(Bloomberg) — Sam Bankman-Fried’s FTX Trading exchange held $900 million in liquid assets against $9 billion of liabilities the day before Friday’s bankruptcy filing, the Financial Times reported Saturday, citing investment materials the newspaper had seen.

Most of the recorded assets are either illiquid venture capital investments or crypto tokens that are not widely traded, according to the spreadsheet. The biggest asset as of Thursday was listed as $2.2 billion worth of a cryptocurrency called Serum.

Bankman-Fried was also looking to sell $472 million of Robinhood Markets Inc. shares at about $9 apiece until Friday afternoon, the FT reported, citing a person involved in the negotiations.

The files also show Bankman-Fried was seeking to raise $6 billion to $10 billion, including a convertible preferred stock issue paying 10% that would later be converted into common equity in FTX International at between $12 billion and $15 billion.

The spreadsheet also referenced $5 billion of withdrawals last Sunday, and a negative $8 billion entry that Bankman-Fried told the FT was related to funds “accidentally” extended to his Alameda trading firm.

©2022 Bloomberg L.P.

 
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