Pro
FTX’s Lack of Balance Sheet
Key Insights
- All may not be lost for FTX customers, and they may be able to recover 40% to 50% of their deposits.
- Sifting through FTX’s balance sheet, as shared by the Financial Times, shows that FTX may have up to $4 billion in realizable assets against $8 billion in customer deposits.
- Owing to lack of clarity, some broad assumptions must be made to calculate the recoverable value of FTX’s users and creditors.
The Financial Times recently shared a document reportedly created by Sam Bankman-Fried (SBF), the founder of the fallen crypto exchange FTX and trading firm Alameda Research. The document, an unbalanced record of creditors owed and assets owned, was reportedly prepared on Nov. 10, 2022.
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Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.
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