SBF: No Funds Stealed or Billions Hidden, FTX US Remains Solvent in Bankruptcy

In mid-November, FTX International was insolvent, SBF said in Substack. Three things combined to cause the implosion: a) During 2021, Alameda's balance sheet grew to roughly $100 billion in NAV, $8 billion in net borrowing (leverage), and $7 billion in liquidity on hand . b) Alameda failed to adequately hedge its market exposure. During 2022, there will be a series of wide-ranging market crashes in the stock and cryptocurrency space, causing the market value of their assets to drop by about 80%. c) In November 2022, an extreme, swift, targeted crash facilitated by the Binance CEO left Alameda insolvent. The Alameda debacle spread to FTX and elsewhere, but FTX US remains fully solvent and should be able to refund all client funds. When he filed for bankruptcy, FTX US had net cash on hand in excess of client balances by approximately $350 million. Its funds and clients are segregated from FTX International. And said it did not steal funds, and certainly did not stash billions of dollars.