The global digital asset industry fell below the $1 trillion market cap following the devastating collapse of Sam Bankman-Fried (SBF) FTX. Crypto exchanges were destroyed overnight due to a massive $8 billion liquidity problem. However, the CEO of FTX Ex in an interview began to open his mouth about the real situation that happened at that time.
In an interview with Bloomberg, SBF previously revealed the balance sheet it showed investors in a move to save the FTX exchange. The report mentions that he listed a debt of $8.9 billion. While $9 billion is shown in liquid assets and $15.4 billion in less liquid assets. It added $3.2 billion in illiquid.
Different sides of the SBF revealed different revelations that showed the real truth during the meeting. The sheet reveals the same type of number. However, it shows $8 billion in less liquid assets.
SBF stated that they had miscalculated. They noted that clients had previously been accustomed to sending money to Alameda Research instead of transferring it directly to FTX. According to his claim, FTX's internal accounting system double counted this amount which was then credited to both exchanges.
The question is where did the $8 billion go? SBF mentions that Alameda and FTX have the largest cash flows. However, Binance, the biggest competitor to FTX turned out to be the biggest spender. A net $2.5 billion was paid to them to buy the investment. listed about $250 million for real estate and about $1.5 billion used as expenses. Capital investment is $4 billion and $1.5 billion for acquisitions.
