1.6 KiB
| title | created |
|---|---|
| FTX and the FTX Collapse | 2022-11-15 |
FTX was a centralized crypto exchange founded in 2019 by Sam Bankman-Fried and headquartered in the Bahamas. There was also a US exchange FTX US. FTX and associated entities filed for bankruptcy on 11 Nov 2022. It had been one of the leading and more "blue-chip" crypto exchanges and played a leading role in bail-outs of other firms which had collapsed earlier in 2022.
FTX bankruptcy
FTX balance sheet at time of bankruptcy
Source: https://www.ft.com/content/0c2a55b6-d34c-4685-8a8d-3c9628f1f185 with full details in https://www.ft.com/content/f05fe9f8-ca0a-48d5-8ef2-7a4d813af558
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The vast majority of FTX Trading’s recorded assets are either illiquid venture capital investments or crypto tokens that are not widely traded, according to the spreadsheet, which cautions that the figures “are rough values, and could be slightly off; there is also obviously a chance of typos etc. They also change a bit over time as trades happen.”
The company’s biggest asset as of Thursday was $2.2bn worth of a cryptocurrency called Serum. Serum’s total market value was $88mn on Saturday, according to data provider CryptoCompare, suggesting FTX’s holdings would be worth far less if sold into the market. CryptoCompare’s figures take into account the coin’s liquidity.
Deeper dive with comic comments in Levine, Matt. ‘FTX’s Balance Sheet Was Bad’. Bloomberg.Com, 14 November 2022. https://www.bloomberg.com/opinion/articles/2022-11-14/ftx-s-balance-sheet-was-bad