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Balance-Sheet Blowup Reverberates in Crypto Markets

(Bloomberg) — Cryptocurrency prices slid again, particularly tokens associated with Sam Bankman-Fried’s collapsed FTX empire. There were growing signs that customers of the bankrupt digital-asset exchange have little chance of recovering much of their deposits.

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FTX Trading International held just $900 million in liquid assets on Thursday — the day before it filed for Chapter 11 bankruptcy — against $9 billion of liabilities, according to sources familiar with the matter. The data referenced a negative $8 billion of a “hidden, poorly internally labeled” fiat currency account and noted $5 billion of withdrawals by users last week.

Compounding a reputational hit to crypto that threatens to drive retail investors away and shrivel institutional demand, an estimated $477 million vanished in unauthorized withdrawals from FTX’s platform, according to blockchain analytics firm Elliptic.

The Bahamian police are working with the Bahamas Securities Commission to investigate whether there was any criminal misconduct in FTX’s collapse. Bankman-Fried was questioned by Bahamian police and regulators Saturday.

Key stories and developments:

FTX’s Balance Sheet, Hack Paint Dim Picture for User Recovery

Bankman-Fried: From Crypto King to King of Tech Bubble’s Losers

Big Investors Are Giving Up on Crypto Markets Going Mainstream

Summers Says FTX Meltdown Has ‘Whiffs’ of Enron-Like Scandal (1)

‘It’s All Gone’: FTX Bankruptcy Is Worst Fear for Retail Traders

(All time references are New York unless otherwise stated.)

Singapore Central Bank Says FTX Wasn’t Licensed in the City-State (2:40 p.m. Hong Kong)

Singapore’s central bank said that while bankrupt crypto exchange FTX doesn’t have a license to operate in the city-state, it’s not possible to prevent local users from “directly accessing” overseas service providers.

Story continues

As a result, FTX was “able to onboard Singapore users,” a spokesperson at the Monetary Authority of Singapore said in an emailed statement to Bloomberg News on Monday. “MAS has consistently reminded…


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