The alleged liquid assets” of FTX in the amount of $ 5.5 billion include blocked Sol-cache and illiquid FTT stocks-
The alleged liquid assets” of FTX in the amount of $ 5.5 billion include blocked Sol-cache and illiquid FTT stocks-
two days ago published insolvency administrator and FTX debtor an update for unsecured believers in which they claimed the discovery of $ 5.5 billion of liquid funds. Around 3.5 billion US dollars of these funds are cryptocurrency systems, with 11 different digital currencies being classified as "liquid systems". However, two of the company's most important cryptocurrency caches are not liquid, since the 47.51 million SOL-TOKEN of the company are blocked and the company's FTT balance distorts the realization of the actual liquidity, since FTX controls more than 80 % of the offer.
blocked Solana and illiquid FTT assets to make FTX's insolvency proceedings more difficult
on January 17, 2023 FTX debtor published a press and a visual division Presentation of assets that were discovered since the company applied for insolvency protection in accordance with Chapter 11 on November 11, 2022. The FTX debtors claim that they have found $ 5.5 billion through a "Herculean investigation", with $ 3.5 billion reports on crypto assets. The visual presentation explains that FTX controls around 685 million US dollars Solana (sol) token, approximately 47.511.173 SOL, and using today's Sol change course is much more worth $ 685 million.
The SOL in possession of FTX debtors is blocked, and this aspect is not mentioned in the visual presentation, which is shown unsecured creditors. It was reported that FTX/Alameda has managed to buy 16 % of the SOL offer from the SOL offer Solana Foundation , but there is a blocking plan. The current existence of 47.51 million SOL corresponds to 8.82 % of the total offer that the Solana network will output over time. Currently only 370,992,365 SOL are in circulation, and this does not take into account the 47.51 million blocked sol, which belongs to the liquidators.
The problem when calling this cache from Sol-Liquid is that it is blocked and is subject to linear transmission by 2025-2027, and it could take years to be accessed. In addition, the debtor cache of ftx-token (ftt) a coin originally created by the ftx-kernteam, is also not liquid, there is also no liquid FTX controlled more than 80 % of the total offer. For example the Ethereum ( eth ) the address " 0x97f "controls 45.850.883 ftt worth more than 1.8 millions of $ today's exchange rates. The presentation of the FTX debtor shows that the FTT FTT-TOKEN worth $ 529 million.
The blocked Solana emission and the fact that FTX has most of the FTT in circulation, brings these tokens more to the side of his. This could make the bankruptcy proceedings and payments to the creditors more difficult because it would be difficult to convert these assets into cash or other crypto assets without significantly influencing the market price.
Even if the SOL were unlocked, the unloading of 47.51 million Sol would lead to disturbances on the market. In addition, FTT suffers from a low trading volume, limited stock markets, few applications, and the company controls most of the FTT offer. Since FTX holds a significant part of the entire FTT offer, it is easy to impair the ability to act with it. To describe these caches of Sol- and Ftt-token as "liquid" is questionable because the data does not support this definition.
What do you think about the discovery of $ 5.5 billion of liquid assets by FTX, despite the presence of blocked and illiquid FTT stocks? How do you think this will affect bankruptcy proceedings and payments to creditors? Share your thoughts in the comment area below.
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