Over the weekend, the Financial Times published a balance sheet supposedly for FTX International and drawn up by FTX former CEO Sam Bankman-Fried. It’s clear from the document that when clients bought tokens that they ‘held’ at the exchange, FTX only kept a small proportion of assets that matched those tokens. The valuations given to some of the tokens on the balance sheet are fiction.
It highlights that there is still a lot more work to do after U.S. accounting body FASB’s decision that token valuations need to be marked to market. The two biggest fantasies are how FTX treated its own token and the value of other tokens that are not yet circulating.
As of two weeks ago, according to SBF, these assets were on the balance sheet at a value of $9 billion. Even on this recent balance sheet, they show up as $3.4 billion when they should be close to zero.
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