FTX bankruptcy filing shows higher cash balance of $1.43 billion, employees reduced

An interim financial update revealed that the FTX Group of companies in bankruptcy proceedings had $1.43 billion in cash at the end of last year.

The presentation of the court viewed by Bloomberg showed a higher cash balance on December 31, 2022 than a $1.24 billion count as of November 20.

• Its now-defunct sister trading company, Alameda Research, posted a cash balance of $876.6 million versus $401 million in November.
• Additionally, the embattled group’s employees were reduced to 195 at the end of the year from 320 when FTX filed for Chapter 11 bankruptcy protection in the United States.
• His former boss, Sam Bankman-Fried, has pleaded not guilty to fraud charges brought against him by the country’s regulators. He was released on a $250 million bond that was secured by his parents’ home in the Palo Alto area.
• The new owners of FTX are working to resolve the issues of up to 134 entities around the world.
• Meanwhile, the US Department of Justice (DOJ) claimed that Bankman-Fried attempted to contact and potentially “influence” the testimony of FTX US Attorney General Ryne Miller, through the Signal encrypted messaging app.
• This prompted prosecutors to file a motion modifying the disgraced founder’s bail conditions to avoid contact with FTX employees and the use of apps like Signal.
• Bankman-Fried has also attempted to arrange an in-person meeting with its current chief executive, John Ray, in recent weeks, according to text and email messages released by prosecutors.
• The events that occurred after the FTX explosion significantly damaged the crypto market, as well as the reputation of the sector. Regulators around the world are now pushing to put more protective measures in place to guard against investor harm and contagion risk.