FTX Users Have Slim Chance of Fund Recovery as FTT, SOL, and SRM Prices Plummet

Updated by Kyle Baird
In Brief
  • FTX balance sheet has $9 billion in liabilities.
  • SBF returns to Twitter with a cryptic tweet.
  • FTX group tokens FTT, SOL, and SRM get smashed.
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Users of the embattled FTX exchange have had a bad week. Things are likely to get much worse for them if the firm’s balance sheet is anything to go by.

The cascade of events following the FTX collapse and bankruptcy filings has dwindled the chances of customer fund recovery.

Furthermore, the rapid devaluation of FTX assets and the $400 million exchange hack over the weekend have compounded problems.

Breaking down the balance sheet paints a grim picture for those with funds stuck on the platform. On Nov. 14, Bloomberg reported that the FTX bankruptcy filing shows that it had nearly $9 billion in liabilities and just $900 million in liquid assets.

Illiquid Assets and Worthless Tokens

Additionally, the report shows that $5.5 billion of the total is in “less liquid” assets, with $3.2 billion in “illiquid” assets. Many of its larger digital asset holdings have tanked in value.

These include the FFT exchange token, Solana’s SOL token, and the Serum exchange token SRM.

The balance sheet also mentioned a negative $8 billion of a “hidden, poorly internally labeled” fiat currency account. There was an additional $472 million in Robinhood shares. However, these holdings were with an entity not included in the bankruptcy proceedings.

SBF returned to crypto Twitter on Nov. 14, tweeting a cryptic “1) What” before adding “2) H” an hour or so later.

Some saw the funny side but most responded by asking where the hell their money was.

According to reports, South Koreans were the most affected by the FTX collapse by country. Singapore was second with 5% of users, and Germany was in third place.

On Nov. 14, Reuters reported that Visa had terminated its agreements with FTX. “We have terminated our global agreements with FTX and their U.S. debit card program is being wound down by their issuer.”

Over the weekend, Binance and Huobi suspended deposits of the FTX FTT token, causing the price to crash even harder.

FTX Group Tokens Tanking

FTT crashed a further 40% over the past 24 hours. The token fell from an intraday high of $2.09 to bottom out at $1.29 a couple of hours ago during Asian trading. FTT has since clawed some back to $1.68, but the token has collapsed 92.5% since the same time last week.

Solana isn’t in much better shape. SOL prices lost 16% in a fall to an intraday low of $12.28, according to CoinGecko. SOL was trading at $12.57 at the time of writing, having lost more than 60% over the past seven days.

The Serum DEX token, SRM, has been smashed by 43% over the past 24 hours. SRM is currently trading for $0.18, having dumped a whopping 76% over the past week. Serum is the biggest listing on the FTX balance sheet, with $2.2 billion in SRM holdings.

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