Market Analysis Report (03 Mar 2023)

Market Analysis Report (03 Mar 2023)

Market Analysis Report (03 Mar 2023) PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Collapsed cryptocurrency exchange FTX has revealed it identified an $8.9 billion shortfall in customer funds that cannot be accounted for. This was the first time the company determined the amount of money that’s missing.

In a public presentation, the company revealed it located approximately $2.7 billion in customer assets, although outstanding balances on customer accounts totaled $11.6 billion.  The estimated value of FTX’s assets and liabilities is based on crypto prices on the day the company filed for bankruptcy in early November.

Since then, new managers, led by restructuring expert John J. Ray III, have been working to identify and protect billions of dollars in lost customer funds. The expert has warned that it’s currently impossible to determine how much customers will be able to recover, as its records are incomplete.

A significant portion of the $8.9 billion deficit in customer funds can be attributed to Alameda Research, which borrowed $9.3 billion from customer accounts before the exchange declared bankruptcy. Alameda held $475 million in cash as of January 31.

Unauthorized transfers and hacks worth approximately $500 million have contributed to the widening gap between what customers are owed and what FTX’s managers have located. FTX is set to keep customers updated on the recovery of their funds.

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