FTX’s Spending Detailed In Latest Financial Report
FTX, the bankrupt cryptocurrency exchange, published its fourth interim financial update, revealing that it spent a total of $86 million through the end of March. The report showed that the majority of the spending, $67 million, went towards legal fees, while the company had $2 billion in cash and brought in $48 million from the sale of assets. However, the report did not include the $50 million FTX stood to receive from the sale of LedgerX, as the deal was finalized on April 25.
FTX had spent $86 million through the end of March. The vast majority of spending ($67 million) was spent on legal fees. The company said it has $2 billion in cash and raised $48 million in proceeds from asset sales. Decrypt reported.https://t.co/WPyyrxG7af
— Wu Blockchain (@WuBlockchain) April 30, 2023
Financial Report
The CEO of FTX, John Ray III, who has been leading the company during its Chapter 11 bankruptcy proceedings, has been open about the difficulties of recovering funds. The $86 million in spending was dispersed across five “silos,” with WRS, FTX’s U.S.-based West Realm Shires, accounting for almost all of it. Four and a half million of the spending came from FTX.com, $798,177 from Alameda, $327,548 from FTX-owned voter analytics firm Deck Technologies Inc., and $50,000 from Ventures.
The report also showed a significant jump in the amount of money FTX has been able to take in since its last report for February 2023, which showed the exchange only having taken in $13.5 million. The $48 million generated from the sale of assets was primarily from FTX exiting a $45 million position in the Sequoia Capital Fund, LP, and another $3 million from exiting an equity position in Spoak Inc., which operates the crypto accounting platform Tactic.
Asset Sales
Since filing for Chapter 11 bankruptcy protection in November 2022, FTX has increased its efforts to recoup funds by selling assets and positions in other companies and ventures. In March, blockchain infrastructure company Mysten Labs bought back $95 million worth of its shares and $1 million SUI tokens from FTX.
Earlier this month, FTX published a case update that showed the company had recovered $6.2 billion in assets. “We believe it is more important to provide transparency to stakeholders by making this information public now than to wait until we can achieve certainty,” Ray said.
As with all of FTX’s reports, it noted that insider payments among debtor companies were part of normal business and “do not include any payments to the founder or their relatives.” Despite the challenges, FTX seems to be making progress in recovering funds and rebuilding its business.
