FTX’s latest liability and asset summary: How much debt can you repay?

Author: Cat Brother, Source: Wu Shuo Real

According to the latest court documents on September 10, as of August 31, FTX held a total of $3.4 billion in crypto assets, mainly including $1.16 billion SOL, $560 million BTC, $192 million ETH, $137 million APT, USD 120 million USDT, USD 119 million XRP, USD 49 million BIT, USD 46 million STG, USD 41 million WBTC and USD 37 million WETH. These ten major assets account for 72% of the crypto assets compiled by FTX. The filing also details that SBF and other executives (Nishad Singh, Zixiao “Gary” Wang, and Caroline Ellison) received $2.2 billion in cash, cryptocurrency, equity, and real estate in the months leading up to FTX’s bankruptcy. This could be significant because U.S. law allows these amounts to be recovered and included in the stock of assets available for distribution to creditors. The documents also report on 38 condos, penthouses and other properties in the Bahamas estimated to be worth about $200 million; as well as attempts to recoup funds donated to politicians and charitable organizations such as New York's Metropolitan Museum of Art.

The current total amount of claims is about 16 billion US dollars + X; the assets sorted out are 7 billion + Since X is not yet clear, the proportion of assets that the end customer can pay for is also still unclear.

The following is the main content of the court documents compiled by Wu Shuo. Original link:

Non-Customer Claims Overview

Since the non-customer claims deadline of June 30, 2023, more than 2,300 non-customer claims have been filed, totaling more than $379 billion. After deduplicating $313 billion, the remaining non-customer claims are $65 billion, including:

● $43.5 billion from the IRS (lower priority);

● FDM (FTX Digital Markets Ltd) $9.2 billion (deemed invalid/duplicate);

● Genesis’ $4.1 billion litigation and priority claims;

● Celsius’ $2 billion lawsuit claim;

● Miscellaneous fraud claims of $2.4 billion;

● Contracts/503(b)(9) $1.4 billion;

● Loans payable $1.1 billion;

● Voyager’s $600 million contract claim;

● Equity claims of $400 million;

Customer claims to date

As of August 24, approximately 36,075 customer claims had been filed, totaling $16 billion.

● At FTX.com and FTX US, the debtors have listed $10.9 billion in customer claims to date.

● Holders of approximately $7.9 billion (72%) of claims have not yet agreed or disputed their scheduled claims.

● Holders of approximately $1.2 billion (10%) of claims have agreed to their scheduled claims.

● Holders of approximately $1.9 billion (18%) of claims have disputed the amount of their scheduled claims. Mediation of disputed claims is currently underway.

● If a customer disputes their booking claim, they have until September 29, 2023 (customer claims deadline) to submit a proof of claim.

Assets recovered

● $800 million in assets recovered by the government (SDNY seized assets, including cash and public equity investments);

● $500 million in brokerage assets (debtor-guaranteed and managed risk brokerage assets);

● Class A crypto assets $3.4 billion;

● $1.5 billion in secured and guaranteed post-bankruptcy cash;

● The debtor’s cash balance of $1.1 billion identified, kept and managed as of the litigation date;

● Potential additional property value, including venture capital, Class B crypto assets, tokens to be collected, counterclaim damages, potential avoidance/preference actions, FTX 2.0, and investments in subsidiaries.

Class A crypto assets

As of August 31, FTX held a total of US$3.4 billion in crypto assets. The main crypto assets include US$1.16 billion SOL, US$560 million BTC, US$192 million ETH, US$137 million APT, US$120 million USDT, US$119 million XRP, $49 million BIT, $46 million STG, $41 million WBTC and $37 million WETH. These ten major assets account for 72% of the crypto assets compiled by FTX.

Brokerage Investment

The Debtors held $529 million in securities in their brokerage accounts, including:

● $417 million Grayscale Bitcoin Trust;

● $70 million Grayscale Ethereum Trust;

● $36 million Bitwise 10 Crypto Index Fund;

● $6 million in Grayscale ETC, LTC Trust and Digital Large Cap;

● BlackRock stock for less than $100,000.

Venture Portfolio

As of the filing date, the venture capital portfolio included 438 investments with a total capital investment of approximately US$4.5 billion. (Note: The investment value invested does not indicate the possible recoverable value.)

$506 million token investment

● Post-ICO tokens are being planned for delivery and are considered less risky. When received, they become assets in the debtor’s cryptoasset portfolio.

● Pre-ICO tokens are early-stage tokens that are considered riskier because they have not yet been minted, so their value is uncertain.

Real Estate in the Bahamas

The 38 properties in the Bahamas have a book value of $222 million and an assessed value of $199 million.

Potential Assets Efforts Are Ongoing to Recover

US$588 million realized and US$16.6 billion of potential assets identified

Investments: Over 430 potential investments

$588 million has been realized and approximately $5.3 billion of additional investments are being investigated (partly reflected in the venture capital analysis).

Non-Debtor Affiliates: More than 7 Potential Actions

Received $3.2 billion from FTX Digital Markets Ltd. and six other non-debtor affiliates.

Insider: Over 50 potential moves

A total of $2.2 billion in cash, cryptocurrency, equity and real estate value was received from SBF, Nishad Singh, Zixiao “Gary” Wang and 46 others.

Lenders: Over 37 potential actions

BlockFi, Genesis and Voyager Digital received or settled $5 billion; the debtors are evaluating claims related to other lenders.

Contributions paid to third parties for political and charitable donations totaled $86.6 million (SOFA Article 9).

Suppliers: Over 884 potential actions

During the priority period, vendors received a total of $190.3 million.

Cryptoassets and venture capital

BTC+ETH

As part of the ongoing asset tracking and recovery process, the Debtors have identified approximately $833 million in BTC and ETH assets (token value as of August 31, 2023), excluding $487 million denominated in BTC/ETH securities.

Class B cryptocurrency

The Debtors’ cryptocurrency holdings include certain tokens that have not met liquidity thresholds and/or are majority controlled by bankrupt entities. For reporting purposes, these tokens are considered Class B. There are more than 1,300 Class B tokens in total.

Venture capital summary

As of the filing date, the venture portfolio includes 438 investments totaling approximately $4.5 billion in raised assets.

(Translated using Deepl)

The US$673 million invested by venture capital was realized into US$588 million (accounting for 87% of the amount invested), and an additional US$137 million of uninvested commitments were cancelled.

Debtor’s remaining entrepreneurial investment portfolio

Top 10 investments account for 66% of remaining token, equity, fund and loan investments

(Translated using Deepl)

Equity Investment Overview

Equity investments accounted for 73% of the remaining venture capital investments, with a total of 202 investments. Among them, the main ones are Genesis Digital with US$1.152 billion; Anthropic with US$500 million; Voyager Digital with US$111 million, etc.

LP/Fund Investment Overview

The debtors have sold certain LPs and reduced their uninvested capital by $137 million. The ongoing sale will release liabilities related to an additional approximately $8 million in uninvested capital. Remaining LP holdings, excluding sold positions, totaled $167 million, or 4% of the venture portfolio.

Token Investment Overview

Token investments accounted for 13% of the remaining venture capital investments, with 171 investments and an average investment size of $3 million. These mainly include Solana's US$137 million; NEAR's US$80 million; Hole's US$68 million, etc.

Loan Investment Overview

Loan investments accounted for 10% of the remaining venture capital investments, with a total of 11 investments and an average investment size of US$33 million. These mainly include Dave with US$100 million, and Voyager Digital with US$75 million.

Non-Debtor Investment Overview

Total financing from non-debtor investments was US$782 million, including 9 investments, with an average investment size of US$87 million. These mainly include the US$400 million Mount Olympus Capital and the US$300 million K5 Global Holdings.

FTX 2.0 Process Update

The Debtors began a marketing process targeting FTX.com and the FTX US exchange in May 2023.

● The process is intended to consider different potential structures, including acquisitions, mergers, reorganizations or other transactions, to relaunch FTX.com and/or the FTX US exchange

● The debtor is also considering providing management and operational services

Transaction timing will depend on the nature of the transaction, bidder readiness and other considerations

(Translated using Deepl)

Issues still under discussion in the draft plan

● Size of expected claim classes, recovery pools and estimates of creditor recovery

● The number of properties to allocate to underconversion claims and the total asset pool

● The decision and manner in which FTX.com exchange was sold or reorganized

● Claims transfer process (recovery of entitlement tokens or cryptoassets) after the plan effective date

● Corporate governance and future management of the post-confirmation entity

● Any amendments to the plan are required to confirm that they are in the best interests of all creditors