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HomeCrypto NewsMarketFTX Holds $1.24B In Cash, While Justin Sun Shows Interest in Exchange Assets

FTX Holds $1.24B In Cash, While Justin Sun Shows Interest in Exchange Assets


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FTX and its associates have about $1.24 billion in cash balances.

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According to a recent court filing seen and published by CNBC, failed cryptocurrency exchange FTX has a total of around $1.24 billion in cash balance as of November 20. Alvarez & Marsal North America, a legal firm currently advising FTX on restructuring efforts following its bankruptcy filing, penned the court filing.

Managing director at Alvarez & Marsal North America Edgar Mosley revealed that as of November 16, his team and FTX traced higher cash balances. The cash balances are from FTX’s vast web entities, including Alameda Research and the exchange’s international subsidiaries.

Details of FTX’s Cash Balance

The highest amount uncovered was $393.1 million, obtained from Alameda Research. Furthermore, the second-biggest cash balance is $303.4 million from LedgerX, an FTX’s derivatives platform.

The Japanese arm of FTX, FTX Japan K.K., has a total of $171.7 million cash in its balance sheet, thus making the trading platform the third-biggest source of cash reserve for the collapsed exchange. Mosley noted that the cash is kept in different financial institutions by FTX and its associates.

FTX Still Owes Creditors $3.1B

While Alvarez & Marsal North America has traced around $1.24 billion in cash reserves, the sum is way lower than the $3.1 billion FTX currently owes its largest 50 unsecured creditors. It is not clear how the exchange intends to fill the gap. However, former FTX CEO and founder Sam Bankman-Fried told CNBC yesterday that he is trying to secure a multi-billion deal to bail out the cryptocurrency exchange. 

The current CEO of FTX, John Ray III, revealed recently in a filing that many of the exchange’s associates did not have “appropriate corporate governance.” FTX, under Ray’s leadership, is seeking to sell or restructure the exchange. Some popular cryptocurrency firms, including Ripple, are interested in buying FTX’s assets.

Justin Sun Eyes FTX’s Assets

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In a report today, the Wall Street Journal (WSJ) stated that Tron founder Justin Sun had declared interest in purchasing the assets of FTX. Sun said his team is evaluating FTX’s assets one after the other, which could take a long time.

“We are open to any deal. I think all the options [are] on the table,” Sun said. “Right now, we are evaluating assets one by one, but as far as I understand, the process will be long since they are already in this kind of bankruptcy procedure.”

Meanwhile, Ray and other FTX executives will appear in Delaware bankruptcy court later today to explain what led to the exchange’s collapse and the steps taken so far to secure customers’ funds.

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Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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