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XRP Worth $93 Million Owed by FTX to Customers, But There's One Problem

Tue, 03/07/2023 - 14:34
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Gamza Khanzadaev
XRP investors lost tens of millions of dollars in FTX crash
XRP Worth $93 Million Owed by FTX to Customers, But There's One Problem
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As a result of the release of a revised balance sheet for FTX's liabilities, it has been revealed that the infamous exchange owes its customers $93 million in XRP, among other things. The problem, however, is that FTX only has $12 million in XRP available on its balance sheet.

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In addition to tens of millions of dollars in debt to XRP investors, FTX, which was declared insolvent in November 2022, owes about $8.7 billion in various other assets. The largest portion of this is in cash, $6.4 billion, and in Bitcoin, $1.6 billion. The biggest reaction from the crypto community has been over the latter, given that FTX only has $1 million worth of BTC on its balance sheet.

It is unclear how the repayment process will work for clients and whether XRP in particular will be refunded. Nevertheless, it may be recalled that FTX Japan announced earlier in late February that it had begun returning funds to customers after a freeze of several months. The Japanese exchange then had 71.8 million XRP on its balance sheet, the equivalent of about $27 million.

FTX Sues Grayscale as It Seeks $250 Million in Its Trust: Details

It was also revealed today that FTX's core entity, together with one of its arms, Alameda Research, has initiated legal action against Grayscale Investments to unlock $9 billion in shares in BTC and ETH-focused trusts.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.