The #crypto business of #FTX CEO Sam Bankman-Fried had a $6.8 billion deficit on its balance sheet when it filed for #bankruptcy in November 2021, based to a recent filing with the bankruptcy court.
The presentation revealed that FTX.com, the company's flagship, had a $10.6 billion loss while FTX.US had a $87 million one. But FTX Ventures had net assets of $1.3 billion and #AlamedaResearch had net assets of $2.6 billion, respectively, respectively. A total of $11.6 billion in debt, primarily in the form of consumer claims, was owed by the group of businesses.
These statements have not been audited and may change, the advisers have advised. Recent legal and regulatory concerns for Bankman-Fried's firms have included inquiries into alleged market manipulation and unregistered securities offerings. It was believed that FTX was overextending itself because of its activities' rapid expansion, which included sponsoring important sports teams and leagues.
The company's risk management and financial controls are expected to come under scrutiny in light of the announcement of the balance sheet deficiency. FTX is not the only company in the crypto sector experiencing financial issues; in recent years, a number of well-known companies have collapsed or been declared bankrupt. Authorities are growing increasingly worried about the potential threats posed by these enterprises, thus the bankruptcy filing is expected to have a big impact on the #cryptocurrency industry and its regulation. Due to increased industry attention and regulation following the demise of FTX, there may be more restrictions placed on the operations of crypto businesses.