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Analysis

Messari Analyzes FTX Can Return Users 50% Of Their Assets

November 16, 2022 - Around 2 mins mins to read
Messari’s preliminary balance sheet calculations show that FTX customers are more likely to receive less than 50% of their money back while their funds are held on the exchange.
Messari Analyzes FTX Can Return Users 50% Of Their Assets

Kunal Goel, a Messari Research analyst, stated that he anticipated consumers might recover between 40% and 50% of their money returned using rough balance sheet data from the Financial Times, indicating that all is not lost.

According to Goel’s analysis, liquid assets total $622 million, less liquid assets total $616 million, and illiquid assets total $2,870 million. The fair value of the assets as a whole is $4,109 million. The net value of the assets is $3,287 million after bankruptcy costs, such as legal fees, are deducted at a 20% rate.

Liabilities are $8,859 million and are made up of client deposits at $8,399 million and other liabilities of $460 million.

Total assets divided by client deposits are 0.49, although the more accurate ratio is 0.39 for net assets.

The wallet attack, in which thieves took $477 million, inflicted a serious blow to user fund recovery, according to Goel. The amounts above, however, don’t include payments that have been misused.

Meanwhile, former FTX CEO Sam Bankman-Fried revealed FTX US is enough to refund users.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

FTT

FTX

Kunal Goel

Messari

Sam Bankman-Fried

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.