Distilling the 42-page FTX Liabilities and Legacy Assets court filing: Non-customer claims amount to $65 billion, total customer claims are $16 billion, and there are only $7 billion in legacy assets.

 

Editor: Karen, Foresight News

 

On September 11, a 42-page document filed in the Delaware Bankruptcy Court listed FTX’s non-customer claims and customer claims, legacy assets after bankruptcy, and FTX 2.0 progress and plans. Foresight News has extracted six key pieces of information from the document for readers’ reference.

 

TL;DR

 

1. Non-customer claims amounted to $65 billion, of which the IRS received $43.5 billion, or nearly 67%;

2. Total customer claims amounted to $16 billion;

3. FTX has approximately $7 billion in estate assets, including $800 million in assets seized by the U.S. Attorney General's Office for the Southern District of New York (SDNY), $3.4 billion in Class A crypto assets secured and managed by the debtor, and $1.5 billion in cash assets identified, secured and managed by the debtor;

4. Among the $3.4 billion Class A crypto assets, the main crypto assets include $1.162 billion SOL, $560 million BTC, $192 million ETH, $137 million APT, $120 million USDT, $119 million XRP, $49 million BIT, $46 million STG, $41 million WBTC and $37 million WETH;

5. FTX also holds more than 1,300 Class B assets (including certain tokens that fail to meet liquidity thresholds and/or are primarily controlled by them), including $362 million in SRM, $309 million in MAPS, $164 million in OXY, $72 million in MEDIA, $51 million in FIDA, etc.;

6. As of the date of the bankruptcy filing, FTX had made 438 investments with a total investment of approximately US$4.5 billion. After excluding exit investments, the total investment in FTX's remaining portfolio as of August 31 was US$3.787 billion.

 

Non-customer claims totaled $65 billion, including $43.5 billion from the IRS

 

Non-Customer Over 2,300 non-customer claims have been filed for over $379 billion, and the removal of $313 billion in duplicates resulted in $65 billion in remaining non-customer claims.

 

Of the $65 billion in non-customer claims, the IRS received $43.5 billion, or nearly 67%, followed by $9.2 billion from FTX’s Bahamas subsidiary FTX Digital Markets (FDM) (deemed invalid and redundant), Genesis ($4.1 billion), Celsius ($2 billion), and others.

 

 

Total customer claims amount to $16 billion

 

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

 

Reminder: If an FTX customer disputes a scheduled claim, they must submit a proof of claim by September 29, 2023 (the customer claim deadline).

 

FTX legacy assets are around $7 billion

 

FTX has approximately $7 billion in estate assets, including:

 

  • $800 million in assets seized by the U.S. Attorney’s Office for the Southern District of New York (SDNY);

  • $500 million in risk brokerage assets secured and managed by the debtor;

  • $3.4 billion of Class A crypto assets secured and managed by the Debtors;

  • $1.5 billion in cash assets identified, secured and managed by the debtors;

  • A cash balance of $1.1 billion secured and administered by the Debtors as of the Petition Date.

  • There are also pending assets including venture capital, Class B digital assets, receivable tokens, counterclaim recovery, potential exit actions, FTX 2.0, and investments in subsidiaries.

 

 

As of August 31, of the $3.4 billion Class A crypto assets guaranteed and managed by the debtor in FTX's legacy assets, major crypto assets included $1.162 billion SOL, $560 million BTC, $192 million ETH, $137 million APT, $120 million USDT, $119 million XRP, $49 million BIT, $46 million STG, $41 million WBTC and $37 million WETH.

 

 

Among the legacy assets, the $529 million in securities held in the debtor’s brokerage accounts include $417 million in Grayscale Bitcoin Trust (79%), $70 million in Grayscale Ethereum Trust (13%), and $36 million in Bitwise 10 Crypto Index Fund.

 

Another equally important item is that FTX also holds more than 1,300 Class B assets (including certain tokens that fail to meet liquidity thresholds and/or are primarily controlled by them), including $362 million in SRM, $309 million in MAPS, $164 million in OXY, $72 million in MEDIA, $51 million in FIDA, etc.

 

 

In addition, FTX and Sam Bankman-Fried own 38 properties in the Bahamas, which FTX Digital Markets JPL assessed through PricewaterhouseCoopers to be worth between US$185 million and US$214 million.

 

As of the bankruptcy filing date, FTX's total portfolio investment was $4.5 billion

In terms of investment portfolio, as of the date of bankruptcy filing, FTX has made 438 investments with a total investment of approximately US$4.5 billion, with funding in the form of cash, cryptocurrency and other transferred assets. It is worth noting that the investment value does not represent the potential recoverable value.

 

In terms of token investments, Post-ICO tokens include $137 million of SOL, $80 million of NEAR, $50 million of MATIC, $20 million of MINA, $10 million of 1INCH, and $84 million of other tokens, while Pre-ICO tokens are mainly 68 million of HOLE and $15 million of FUEL.

 

Note: Post-ICO tokens will be released gradually, with lower risk, and will be converted into assets in the portfolio after receipt. Pre-ICO tokens have not yet been minted, and their value uncertainty is high.

 

 

After FTX filed for bankruptcy, the total investment in the portfolio dropped to $3.787 billion after exiting investments.

From the bankruptcy filing date to August 31, 2023, FTX has identified $588 million in cash received from exit investments and eliminated $137 million in unfunded commitments. The top exit investments include:

 

  • recovered $474 million from hedge fund Módulo Capital;

  • recover $101 million from Mysten Labs;

  • recovering $50 million from Sequoia Capital;

  • recovering $25 million from Sequoia Heritage;

  • other.

 

That is to say, as of August 31, FTX's remaining portfolio investments totaled $3.787 billion. The top 10 investments accounted for 66% of the remaining token, equity, fund, and loan investments, including Genesis Digital Assets ($1.152 billion), Anthropic ($500 million), Voyager ($185 million), Solana ($137 million), Toss ($126 million), Dave ($115 million), NEAR ($80 million), Aptos ($78 million), Chipper Cash ($75 million), and Hole ($68 million).

 

Among them, equity investment accounts for the largest proportion of FTX's remaining portfolio investments after excluding launch investments, reaching 73% of the remaining financing venture portfolio, with an average investment size of US$14 million, as follows.

 

 

In addition, of the $225 million in LP commitments, the remaining LP or fund investments (excluding sold positions) totaled $167 million, accounting for 4% of the venture portfolio, with an average investment size of $5 million, including SkyBridge Capital ($45 million), Liquid Value Fund (reduced from $60 million in commitments to $27 million), Paradigm One (reduced from $35 million in commitments to $24 million), Toy Ventures (reduced from $25 million in commitments to $18 million), SkyBridge Coin Fund ($10 million) Multicoin Venture Fund ($5 million), 6529 Capital ($5 million), ROK Capital ($5 million), Kraken Ventures (reduced from $5 million in commitments to $3 million), and IOSG Venture ($3 million).

 

 

Token investments account for 13% of the remaining portfolio, reaching $506 million, including 171 investments with an average investment size of $3 million, including $137 million SOL, $80 million NEAR, $68 million HOLE, $50 million MATIC, $20 million MINA, $15 million FUEL, $13 million Port Finance, $10 million 1INCH, $10 million Enigma, etc.

 

 

Loan investments ($368 million) accounted for 10% of the remaining venture capital investments, including 11 investments with an average investment size of $33 million.

 

 

Non-Debtor investment funds totaled $782 million, including 9 investments with an average investment size of $87 million.

 

How is the FTX 2.0 process progressing?

 

Since at least May 2023, FTX has contacted more than 75 bidders to evaluate the possibility of restarting the exchange. Bidders include existing exchanges, strategic buyers, and financial buyers. According to the filing, the process is intended to consider different potential structures, including acquisitions, mergers, recapitalizations, or other transactions to restart FTX.com or FTX US exchanges.

 

Some important time points include:

 

  • Hearing set for September 13;

  • The deadline for bidding on FTX 2.0 is September 24;

  • The stalking horse target will be selected in the fourth quarter of 2023;

  • Submit a disclosure statement and revised plan by year end;

  • The target plan is confirmed in the second quarter of 2024.