FTX latest asset status: Besides $3.4 billion in cryptocurrencies, how much of the assets are used for debt repayment?
Original Author: Brother Cat
Original Editor: Colin Wu
According to the latest court documents as of September 10, FTX holds a total of $3.4 billion in crypto assets as of August 31, including $1.16 billion in SOL, $560 million in BTC, $192 million in ETH, $137 million in APT, $120 million in USDT, $119 million in XRP, $49 million in BIT, $46 million in STG, $41 million in WBTC, and $37 million in WETH. These ten main assets account for 72% of the total crypto assets identified by FTX. The document also details the cash, cryptocurrency, equity, and real estate received by SBF and other executives (Nishad Singh, Zixiao "Gary" Wang, and Caroline Ellison) in the months leading up to FTX's bankruptcy, totaling $2.2 billion. This could be significant as US law allows for the recovery of these funds and includes them in the pool of assets available for distribution to creditors. The document also reports 38 apartments, penthouse luxury apartments, and other properties in the Bahamas estimated to be worth approximately $200 million, as well as attempts to recover funds donated to politicians and charities such as the Metropolitan Museum of Art in New York.
Currently, the total amount of claims is approximately $16 billion + X; the identified assets amount to $7 billion + X; and the lawyer fees for the first year are estimated to be $500-600 million. Since X is not yet determined, the proportion of assets that can be compensated to clients remains unclear.
Below is the main content of the court documents organized by Wu, original link:
https://drive.google.com/file/d/1Y4jMmyEQq-qOoHL2blXhVjRMMi06X9HB/view?usp=sharing
Summary of Non-Client Claims
Since the non-client claims deadline on June 30, 2023, over 2,300 non-client claims have been submitted, totaling over $379 billion. After removing $313 billion in duplicates, the remaining non-client claims amount to $65 billion, including:
● $43.5 billion for the US Internal Revenue Service (IRS) (subordinated)
● FDM (FTX Digital Markets Ltd) $9.2 billion (considered invalid/repeated);
● Genesis' $4.1 billion lawsuit and priority claims;
● Celsius' $2 billion lawsuit claim;
● Miscellaneous fraudulent claims $2.4 billion;
● Contract/503(b)(9) $1.4 billion;
● Accounts payable loans $1.1 billion;
● Voyager $600 million contract claim;
● Equity claims $400 million;
Customer claims to date
As of August 24th, approximately 36,075 customer claims have been submitted, totaling $16 billion.
● At FTX.com and FTX US, debtors have listed $10.9 billion in customer claims to date.
● Holders of approximately $7.9 billion (72%) of the claims have not yet agreed to or disputed their allocated claims.
● Holders of approximately $1.2 billion (10%) of the claims have agreed to their allocated claims.
● Holders of approximately $1.9 billion (18%) of the claims have disputed the amount of their allocated claims. Dispute resolution for contested claims is currently ongoing.
● Customers who dispute their allocated claims can submit claim proofs by the customer claim deadline of September 29th, 2023.
Recovered assets
● Assets seized by the government $800 million (assets seized by SDNY, including cash and public equity investments);
● Brokerage assets $500 million (debtors' secured and managed risk brokerage assets);
● Class A cryptocurrency assets $3.4 billion;
● Identified and secured post-bankruptcy cash $1.5 billion;
● Cash balance determined, maintained, and managed by the debtor on the day of the lawsuit is $1.1 billion;
● Potential additional property values, including venture capital, Class B cryptographic assets, pending token receipts, counterclaims compensation, potential avoidance/preference actions, FTX 2.0, and investments in subsidiaries.
Class A Cryptographic Assets
As of August 31, FTX holds $3.4 billion in cryptographic assets at the price, with the main cryptographic assets including $1.16 billion in SOL, $560 million in BTC, $192 million in ETH, $137 million in APT, $120 million in USDT, $119 million in XRP, $49 million in BIT, $46 million in STG, $41 million in WBTC, and $37 million in WETH. These ten major assets account for 72% of the cryptographic assets compiled by FTX.
Brokerage Investments
The debtor holds $529 million in securities in the brokerage account, including:
● $417 million in Grayscale Bitcoin Trust;
● $70 million in Grayscale Ethereum Trust;
● $36 million in Bitwise 10 Crypto Index Fund;
● $6 million in Grayscale ETC, LTC Trust, and Digital Large Cap;
● Less than $100,000 in BlackRock stocks.
Venture Investment Portfolio
As of the application date, the venture capital portfolio includes 438 investments with a total capital investment of approximately $4.5 billion. (Note: The investment value does not represent the potential recoverable value.)
$506 million token investment
● Tokens after ICO are planned for delivery and are considered lower risk. Once received, they become assets in the debtor's cryptocurrency portfolio.
● Tokens before ICO are in the early stage and are considered higher risk because they have not yet been minted, so their value is uncertain.
Properties in the Bahamas
38 properties in the Bahamas, with a book value of $222 million and an appraised value of $199 million.
Potential assets being recovered
$588 million realized and $16.6 billion identified potential assets
Investments: Over 430 potential investments
$588 million realized and an additional $5.3 billion under investigation (partly reflected in venture capital analysis).
Non-debtor subsidiaries: Over 7 potential actions
Received $3.2 billion from FTX Digital Market Ltd. and six additional non-debtor affiliated companies.
Insiders: Over 50 potential actions
Received a total of $2.2 billion in cash, cryptocurrency, equity, and real estate values from SBF, Nishad Singh, Zixiao "Gary" Wang, and 46 others.
Lenders: Over 37 potential actions
BlockFi, Genesis, and Voyager Digital received or settled amounts of $5 billion; debtors are evaluating claims related to other lenders.
The total amount of political and charitable donations to third-party payments is $86.6 million (SOFA 9).
Suppliers: Over 884 potential actions.
During the preferential period, suppliers received a total of $190.3 million.
Crypto Assets and Venture Capital
BTC+ETH
As part of the ongoing asset tracking and recovery process, debtors have identified approximately $833 million in BTC and ETH assets (token value as of August 31, 2023), excluding securities worth $487 million priced in BTC/ETH.
Class B Cryptocurrencies
The debtor's cryptocurrency holdings include tokens that have not met liquidity thresholds and/or are mostly controlled by bankrupt entities. For reporting purposes, these tokens are considered Class B. There are over 1,300 types of Class B tokens in total.
Venture Capital Summary
As of the application date, the venture capital portfolio includes 438 investments with a total of approximately $4.5 billion in raised assets.
(Translated using Deepl)
Risk capital investment of $673 million has been realized as $588 million (87% of the invested amount), and an additional $137 million of uninvested commitments has been cancelled.
Remaining venture capital portfolio of the debtor
The top 10 investments account for 66% of the remaining token, equity, fund, and loan investments
Equity investment overview
Equity investments account for 73% of the remaining risk capital investment, with a total of 202 deals. Including $1.152 billion in Genesis Digital, $500 million in Anthropic, $111 million in Voyager Digital, etc.
LP/Fund investment overview
The debtor has sold certain LP interests and reduced $137 million of uninvested capital. Ongoing sales will release liabilities related to approximately $8 million of uninvested capital. The remaining LP holdings, excluding sold positions, amount to $167 million, accounting for 4% of the venture capital portfolio.
Token investment overview
Token investments account for 13% of the remaining venture capital, with a total of 171 investments and an average investment size of $3 million. This includes Solana with $137 million; NEAR with $80 million; Hole with $68 million, and so on.
Loan investment overview
Loan investments account for 10% of the remaining venture capital, with a total of 11 investments and an average investment size of $33 million. This includes Dave with $100 million, Voyager Digital with $75 million, and so on.
Non-debtor investment overview
The total financing amount of non-debtor investments is $782 million, including 9 investments with an average investment size of $87 million. This includes Mount Olympus Capital with $400 million, K 5 Global Holdings with $300 million, and so on.
FTX 2.0 Process Update
Debtors initiated a marketing process for FTX.com and FTX US exchanges in May 2023.
● This process aims to consider different potential structures, including acquisitions, mergers, reorganizations, or other transactions, to relaunch FTX.com and/or FTX US exchange.
● Debtors are also considering offering management and operational services.
The timing of the transactions will depend on the nature of the transactions, the preparedness of bidders, and other considerations.
Issues still under discussion in the draft plan
● The size of expected claim categories, estimation of recovery fund and creditors' recovery
● The amount of property to be allocated to insufficiently redeemed claims and the total asset pool
● The decision and approach to selling or restructuring FTX.com exchange
● Process of claim transfer after the plan becomes effective (recovering right tokens or cryptographic assets)
● Corporate governance and future management of the confirmed entities
● Any revisions needed to be made to the plan to ensure that these revisions serve the best interests of all creditors
