SBF mentions in the article that FTX retained some of what law firm S&C released is extremely misleading. In particular, they write: "The assets identified as of the Petition Date are substantially less than the aggregate third-party customer balances suggested by the electronic ledger for FTX US." SBF said that these claims by S&C are wrong, and contradicted by data later on in the same document. FTX US was and is solvent.
In the presentation that S&C formally filed on the Delaware Chapter 11 court docket, S&C failed to include $428m in FTX US’s bank accounts as an asset: $181 million of digital assets, not including $428 million in banks. More than $181 million of customer balances, including USD. Thus, they concluded that FTX US had a "shortfall".
And SBF said that customer balances are likely around $199 million, and certainly less than $497 million (which they were a day earlier before massive withdrawals). Thus FTX US had at least $111 million, and likely around $400 million, of excess cash on top of what was required to match customer balances.
SBF
FTX
