FTX isn’t sure how much money it has or how many people it employs: CEO John J. Ray

FTX doesn’t know exactly how much money it has and still hasn’t produced a full list of employees, according to a 30-page confirmation from FTX Group CEO John J. Ray Thursday morning.

But Ray was able to estimate that the now bankrupt FTX Group, which includes FTX.com, trading desk Alameda Research and FTX US, has about $564 million in cash.

He and his newly appointed board members are now undergoing a process to locate all of FTX’s bank accounts, ordering a freeze on funds and ordering the institutions “not to accept instructions from Mr. Bankman-Fried or other signatories.”

Ray has gone too far distance between the company From co-founder and former CEO, Sam Bankman-Fried, who has been very vocal on Twitter since filing for bankruptcy. Ray wrote last night on Twitter, using the official FTX account, that Bankman-Fried “has no ongoing role in FTX.com, FTX US, or Alameda Research Ltd.” He does not speak for them.”

Meanwhile, Ray says FTX “acquired only a fraction of the digital assets” they believe FTX group companies own.

To date, that amounts to $740 million now held in cold storage wallets, which FTX “believes to be attributable” to West Realm Shires, Alameda, or FTX.com. Ray notes $372 million in unauthorized transfers That occurred on the same day that FTX filed for bankruptcy and minted $300 million worth of FTX tokens (FTT) after filing.

FTX Filed bankruptcy on November 11 after it was announced Pending deal For its competitor, Binance, to acquire the company was Designation. At the time, Binance CEO Changpeng Zhao said that FTX is “beyond our ability to help.”

Now, with Ray’s statement, details are being announced on how far FTX can help.

His list of assets and liabilities for more than 130 companies filing for bankruptcy comes with a sizable disclaimer: The balance sheets of Alameda Research and the FTX companies may not have been audited recently, or perhaps never properly audited.

West Realm Shires was last audited by audit firm Armanino for the period ending December 31, 2021. And FTX.com, which was said to have raised $1 billion at a $32 billion valuation in September, did so based on a 2021 review by Prager Metis.

“In practice, I do not believe it is appropriate for stakeholders or the court to rely on audited financial statements as a reliable indicator of the financial conditions of these silos,” Wray wrote.

What Ray calls the “dotcom silos,” cryptocurrency exchange FTX.com, lists $2.3 billion in assets and $465 million in liabilities. However, the assets exclude clients’ crypto assets that have been locked on the exchange since last week.

West Realm Shares, parent company of FTX US and LedgerX and 51% owner of BlockFi, shows assets of $1.4 billion and liabilities of $316 million. Alameda Research’s balance sheet shows assets of $13.5 billion and liabilities of $5 billion. FTX venture capital firms, including Clifton Bay Investments and FTX Ventures, show nearly $2 billion in combined assets and $2 billion in liabilities.

While those balances make it seem like West Realm Shires and venture groups should be able to cover their debts, Ray writes that he compiled a list of unaudited balance sheets and because they were prepared while Bankman-Fried was still in control of the company, “I don’t” you trust, and the information contained therein may not be correct as of the date indicated.

Jay’s affidavit, which was filed early Thursday morning, criticized FTX founders Sam Bankman-Fried, Zixiao “Gary” Wang and Nishad Singh for “Complete absence of reliable financial information. “

The details show that West Realm Shires lent $250 million worth of FTX tokens, or FTT, to BlockFi on Sept. 30, when the token was trading at around $24, according to CoinGecko. Thursday morning, FTT was trading at $1.61.

In a footnote at the bottom of a table detailing Alameda’s assets and liabilities, Jay writes that $4.1 billion of receivables on the balance sheet includes a $2.3 billion loan to Paper Bird Inc. , another debtor to FTX Group, and three different loans to FTX principals. , including $1 billion for Bankman Fried, $543 million for Singh and $55 million for Ryan Salama.

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