On January 17th, Sam Bankman-Fried (SBF), the founder of FTX, addressed a pressing issue regarding the solvency of FTX.US, the United States-based branch of the bankrupt exchange.
The recent revelations made by the new management team at FTX about shortfalls in the U.S. subsidiary had sparked concerns from SBF, who had assured the U.S. customers of the solvency of FTX US.
In a statement, Bankman-Fried sought to reassure the customers that FTX.US was solvent, that all funds were safe and secure, and that the customers should have full access to their funds.
SBF posted tweets stating that the recent claims made by the new management team of FTX are “misleading.” This is because the statements do not consider the substantial amount of assets held by the exchange, specifically the $428 million held in its bank accounts.
SBF’s attorneys have argued that FTX.US has considerable financial resources, including at least $111 million in cash and an estimated $400 million in excess cash.
In a recent substack report, SBF highlighted a lack of transparency from the management team regarding the assets they discovered to be “substantially less.” Specifically, the management did not provide any information about the nature of these assets or whether they included any non-USD balances.
This lack of clarity raises questions about the accuracy and completeness of the information provided by the management team. Additionally, SBF mentioned that FTX.US Derivatives (LedgerX) held $250 million in a segregated bank account designated for regulatory capital requirements.
This amount surpasses the $181 million that management had reported as being discovered as of the petition date, as stated by SBF, which raises further concerns about the management’s transparency and honesty.” the management of FTX was being unjustifiably selective in their comparison by failing to take into account the bankrupt firm’s bank balances as part of its assets” SBF concluded.
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