Thread by @boredinsider

FTX customers are furious where their money went 😡

Part of the answer is hidden in the infamous #FTX & FTX US financial statements.

Let’s dive in… 🪂

2/ Starting with FTX’s acquisition spree:

🟥 The #LedgerX deal alone comes with $129M paid for goodwill (a fancy word for overpayment).

🟥 Add to that $206M for intangible assets (licenses and customer base).

Licenses are hardly recyclable and customers are long gone.

3/ Moving down the document

🟥 The sponsorship agreements for FTX US alone are over $440M.

Compared to:
🟥 $46M in REVENUE
🟥 $98M net operating LOSS

Marketing expense is quite aggressive to say the least.

4/ A look at FTX Trading:

🟥 Another $315M paid for goodwill and licenses of Digital Assets DA
🟥 Then $145M for the #Blockfilio deal

These were paid mostly in #FTT, helping the death spiral.

5/ Two other major acquisitions were made in 2022, amounting to $374M.

❗️ Details of the deals are not shared, but chances are the bulk is again goodwill and worthless intangible assets.

6/ The parent company has been even more generous when it comes to sponsorship and marketing, committing $576M.

🟥 This is compared to $1B in revenues and $272M in operating income.

7/ The biggest scam 🍒

🟥 Alameda’s unsecured loans. Comparing assets and liabilities, we see a large cash deficits covered with #SOL and #SRM.

Hence, they’ve either grossly overpaid for them or accumulated large operating losses (eg acting as backstop liquidity for #LUNA/UST)

You think this is over? It merely is the beginning.

Follow me and retweet to spread the good word.

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