by • Sam Bankman-Fried used Microsoft Excel to reveal that FTX US was solvent.
• FTX debtors have identified $5.5 billion in liquid assets, including $1.7 billion in cash, $3.5 billion in crypto assets, and around $300 million in securities.
• It took a “Herculean investigative effort” from the FTX team to uncover this preliminary information.
Sam Bankman-Fried, CEO of FTX, recently revealed that the exchange was solvent through a Microsoft Excel spreadsheet. This was a major development, as large enterprise businesses spend tons of money keeping track of their financial dealings. The spreadsheet contained customer balances, bank deposits, and assets held in cold storage. Bankman-Fried noted that FTX’s former legal counsel, Sullivan & Cromwell, had forgotten to include the bank balances in the spreadsheet, which amounted to $428 million. Once these balances were added back in, the total balance was around $350 million.
However, the discovery of the exchange’s solvency didn’t end there. The debtors of FTX have identified $5.5 billion in liquid assets, including $1.7 billion in cash, $3.5 billion in crypto assets, and around $300 million in securities. This is an incredible amount of money, and it took a “Herculean investigative effort” from the FTX team to uncover this preliminary information.
FTX CEO John Ray was pleased with the findings, noting that it was “important progress” in their efforts to maximize recoveries. Bankman-Fried echoed the sentiment, saying that the Excel spreadsheet was a “good sign” and that it showed that FTX was financially stable. He also noted that the exchange’s debtors had identified other assets that were not included in the Excel spreadsheet, such as real estate, equity investments, and venture capital investments.
Overall, the findings from FTX’s Excel spreadsheet and the “Herculean investigative effort” from its debtors are encouraging signs for the exchange. Not only does it show that FTX is financially stable, but it also shows that the team is committed to maximizing recoveries and ensuring the exchange’s long-term success.
