FTX And Alameda Lose $3.7 Billion In 2022
According to court documents, Bankman-Fried’s businesses mainly include trading company Alameda Research, founded in 2017, and cryptocurrency exchange FTX, launched in 2019, which has had a net loss of $3.7 billion since its inception.
According to Forbes citing related petitions from the bankruptcy court, FTX Group’s 2021 tax returns show a total carry-over net operating loss of $3.7 billion.
This means that SBF’s business, which mainly consists of Alameda Research and FTX, has posted a net loss of $3.7 billion since its inception. The document does not specify what the forward loss is $3.7 billion per year and from an accounting perspective.
It is unclear whether the $3.7 billion net operating loss was an actual loss or whether they reflected SBF’s business and operations at the time and its asset value.
The huge loss is bewildering for two main reasons: it contradicts the image SBF paints for its own startup, and it goes against the trend of high returns in the crypto industry in 2021.
Last year, SBF told Forbes that Alameda made $1 billion in profit in 2020, and CNBC reported that FTX’s leaked 2021 financial results show that it was profitable in 2021 with net income is $388 million.
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