After Zane Tackett, the former head of institutional sales at FTX, explained the reason for withdrawing funds from the Bahamas early this morning, he showed that he had resigned, exposing the possible balance sheet of FTX.

Zane Tackett said he had nothing to say at the moment but was interested in hearing other people's thoughts. There are now two options:

  • (A) Declaration of bankruptcy

  • (B) Issuing Tokens

Liquidity asset gap reaches $7.9 billion

He began by describing FTX's likely balance sheet.

  • Debt: $8.8 billion (negative)

  • Liquid assets: USD 900 million (example: USD/JPY/DAI)

  • Low liquidity assets: US$2.037 billion (for example: GBTC/ETHE/SOL)

  • Non-performing liquid assets: US$3.2 billion (e.g. equity in long-term investments)

Therefore, Liquid Assets Gap: $7.9 billion (negative), NPL Gap: $2.66 billion (negative).

1/I obviously have 0 say at this point, but hey, interested to hear others' thoughts:Two options:A) bankruptcyB) token

[THESE ARE NOT CONCRETE NUMBERS]Liabilities: -8.8bn

Liquid assets: 900mLess liquid: 2.037bnIlliquid: 3.2bn

liquid hole: -7.9bnilliquid hole: -2.66bn

— Zane Tackett (@tackettzane) November 11, 2022

Are you hoping to pursue Bitfinex’s debt issuance and stock exchange model?

 

He said it was difficult to sugarcoat the gaping hole, but he had expected it to be worse. He recalled the painful and lengthy legal process that followed Mt. Gox's bankruptcy.

He said that if there is a token that can give you immediate liquidity for your current assets, it will definitely be better than option A of bankruptcy.

There would also be some benefits to having a token, and he made the case for the BFX token to be converted into shares, paying >$2 in dividends + the corresponding Bitfinex equity value for every $1 lost. (Chain News Note: He is referring to the BFX tokens given to creditors after the exchange Bitfinex was hacked in 2016, which can be converted into equity)

He also launched an opinion survey. Among nearly 5,000 votes, 70% of people were willing to choose debt tokens:

i'll make it an official poll, cool token vs boomer procedures.

— Zane Tackett (@tackettzane) November 11, 2022

In this article, a former FTX executive exposed the current balance sheet and launched an investigation: Should we follow Bitfinex’s example in issuing debt tokens? First appeared in Chain News ABMedia.