After Declaring Bankruptcy, FTX Rescue Plan Fails With Troubled Assets

According to the Wall Street Journal, Sam Bankman-Fried, the former CEO of the cryptocurrency trading platform FTX that declared bankruptcy, said that when it was difficult to raise cash early last month, FTX seized the value of the trading unit Alameda Research. billions of dollars in collateral and try to use that collateral to convince investors that it is in financial health.

The US media pointed out that the value of many of these collaterals does not match the book value. A large portion of these assets are four cryptographic tokens and are closely related to Sam Bankman-Fried and FTX employees, and are mostly held by Alameda.

According to market data and some cryptocurrency researchers, the value of these tokens may be far less than the $6.4 billion marked on the balance sheet of FTX to solicit investors for a bailout.

The document, dated Nov. 10, lists four tokens seized from Alameda as assets, according to an interview with Bankman-Fried on Friday and documents seen by The Wall Street Journal.

By then, the tokens had lost roughly half their value in less than a week, according to market data and FTX’s balance sheet.

AndroBliz learned that FTX announced on November 11 that it had initiated bankruptcy proceedings in the United States.

FTX said in a statement that CEO Sam Bankman-Fried has resigned, but will remain with the company to assist in an orderly transition. Additionally, John Ray was appointed as the new CEO of FTX.