FTX Hack and Balance Sheet Mystery – Crypto Prices Weak As Up to $2 Billion of Client Funds Missing. Where is SBF?
Aside from losses resulting from the FTX hack, the bankrupt exchange is apparently unable to account for $1 billion to $2 billion of client funds, say people familiar with the matter, and its balance sheet shows liabilities of $8,859 million against assets of just $899 million.
In addition, $10 billion was transferred to sister company Alameda Research and, perhaps most damagingly from a legal perspective, FTX insiders created a “back door” to its accounting systems, according to Reuters reports.
A back door to bypass oversight requirements opens the FTX leadership to charges that they were trying to shield their nefarious activities from the rest of the groups employees.
These latest explosive findings follow an admission by the exchange that "unauthorized transactions" had taken place.
So far it is estimated that the $600 million may have been drained from wallets in what was either a hack or nefarious behaviour by insiders.
The sketchy balance sheet shown above includes a number of large “less liquid” and illiquid entries, such as $2.1 billion worth of Serum (SRM) tokens, which when marked to market will be worth much less than the book entry indicates.
There are other strange entries, such as "Anthropic" $500 million; "TWTR" $43.2 million and "TRUMPLOSE" $7.3 million.
TWTR is of course the ticker for Twitter, but it is sitting in the illiquid part of the ledger, which is strange as even though Twitter is now a private company, as a shareholder when it was public, if an FTX entity was a shareholder, FTX should have received $54.20 a share for its stock holding.
As the FTX disaster unfolds, crypto prices remain weak. Bitcoin is off 2% today at $16,565.
But as reports emerge about how the close knit executive team lived and
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