BlocksInform
The recently published court documents reveal a "$65 billion backdoor" that the FTX had put in place for Alameda, the now defunct business arm of the cryptoexchange.
A case file with a presentation detailing the assets and liabilities of FTX shows that Alameda Research had the capacity to borrow up to $65 billion from FTX without a security deposit, while FTX clients had strict collateral rules.
The bridge also has a code in the FTX platform that would have permitted a backdoor for the transfer of the exchange assets to alameda under the radar. It meant that "some people" could remove goods without leaving a file in the foreign exchange register.
Alameda has also been exempted from liquidation when it is negotiated against it, according to documents.
At the time of writing, it is not clear to whom the "certain persons" referred to in the deposit pertain.
The paper suggests that everything, ftx has approximately $5.5 billion in liquid assets available to repay creditors, $1.7 billion of it in cash, 3.5 billion dollars in liquid crypto assets, including ftt, and three hundred million dollars in various titles.
Among the different debt recovery strategies, "exploring potential reorganisation possibilities for FTX trade" is listed.
Sam Bankman-Fried, former CEO of FTX, has recently published a "pre-mortem" position in which he partly BINANCE Managing Director Changpeng Zhao (CZ) for the disappearance of FTX.
“Three things combined together to cause the implosion:
a) Over the course of 2021, Alameda’s balance sheet grew to roughly $100 billion of Net Asset Value, $8 billion of net borrowing (leverage), and $7 billion of liquidity on hand.
b) Alameda did not adequately cover its exposure to the marketplace. Over the course of 2022, a series of large broad market crashes came–in stocks and in crypto–leading to a ~80% decrease in the market value of its assets.
c) In November 2022, an extreme, quick, targeted crash precipitated by the CEO of Binance made Alameda insolvent.”
Investigation into the collapse of FTX and its associated entities is ongoing, and the amount that creditors will recover is yet to be determined.
