News

Sam Bankman-Fried “Misaccounted” $8 Billion Balance Sheet Deficit

Sam Bankman-Fried (SBF), FTX’s former CEO, exposed the money’s location in a recent Bloomberg interview. SBF stated that during an emergency bailout, he presented investors with a different balance sheet.

SBF has $8.9 billion in debt, $9 billion in liquid assets, and $15.4 billion in less liquid assets, according to the report. In addition, the study revealed $3.2 billion in illiquid assets.

The imbalance on FTX’s financial sheet continued to increase. The company first claimed only $2 billion before increasing it to $5 billion. The gap has now widened to more than $8 billion.

Sam Bankman-Fried produced another balance sheet that depicted the current state of affairs at the time of the bailout meeting. The balance sheet shows comparable figures but $8 billion fewer liquid assets. SBF stated that he misquoted the numbers.

According to a quote from SBF’s interview with ByZeke Faux:

Faux asked: “You didn’t have $8 billion in cash that you thought you had?

SBF: “That’s correct. Yes.”

Faux: “You misplaced $8 billion?”

SBF: “Misaccounts”

Customers were directing money to Alameda Research rather than directly to FTX, he claimed. According to his statement, the cash was double-counted and awarded to both businesses by FTX’s internal audit system.

Following SBF’s announcement, FTX and Alameda Research had the most cash flow, while Binance, a competitor, became the most expensive. He spent a total of $2.5 billion to acquire Binance’s interests. Bankman-Fried also admitted to spending $250 million on real estate and $1.5 billion on other costs.

Some $4 billion and $1.5 billion were invested in venture capital to buy other enterprises, respectively, while $1 billion was miscounted.

According to the report, Bankman-Fried and the remaining staff spent the previous weekend trying to gather finances. The cash will be used to close an $8 billion shortfall in FTX’s balance sheet and reimburse consumers.

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

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.

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