SBF: During 2021, Alameda had a net asset value of $100 billion, and FTX US could repay all customer funds

ChainCatcher news, SBF mentioned in his latest blog post that in mid-November, FTX International was actually insolvent. Three things combined led to the implosion:

a) During 2021, Alameda's balance sheet grew to approximately $100 billion in net assets, $8 billion in net borrowings (leverage), and $7 billion in available liquidity. b) Alameda failed to adequately hedge its market risks. Throughout 2022, a series of large-scale widespread market crashes in the stock and cryptocurrency sectors caused its asset market value to drop by about 80%. c) In November 2022, an extreme, rapid, targeted crash facilitated by the Binance CEO rendered Alameda insolvent.

Additionally, SBF stated that despite this, FTX still has a chance for recovery, FTX US remains fully solvent, and should be able to return all customer funds. FTX International has billions of dollars in assets, and its individuals have almost devoted all their assets to the customers. (source link)