- Leaked documents show that FTX has seen a 1000% increase in the past year.
- FTX has gone from $90 million in revenue to $1B in a little over a year.
- The FDIC has recently issued a cease and desist order against the crypto platform.
According to documents leaked from within the company, FTX was able to capitalize on the crypto craze to generate revenue of one billion dollars in 2018 while simultaneously extending its global reach through a frenzy of acquisitions.
The documents provide an extremely unusual look into the financial workings of the privately held business. FTX has surely been successful, rapidly expanding its operations across the world, and experiencing explosive growth.
A rare look under the hood at FTX’s finances & growth in 2021. Leaked financials show📃
– Revenue jumped 1,000%, topped $1B
– Profitable, with 27% operating margins
– Most biz coming from derivatives, outside U.S.
– Global footprint growing through M&Ahttps://t.co/ocSlsNarRA— Kate Rooney ☘️ (@Kr00ney) August 20, 2022
As the price of cryptocurrencies reached an all-time high, the exchange saw its earnings soar from less than $90 million in 2020 to more than $1 billion in 2021. In addition, the report states that FTX had $2.5 billion in cash at the end of 2021 and had a profit margin of 27%.
However, it reported revenue of $808.3 million for the second quarter of this year, which is a decrease of 64% from the same quarter a year ago. Additionally, it reported an unexpected net loss of $1.1 billion, which compares to a net income of $1.59 billion for the same quarter a year earlier. This is because the retail trading volumes tanked.
In related news, The Federal Deposit Insurance Corporation (FDIC) issued a cease-and-desist order to the cryptocurrency exchange, which is controlled by Sam Bankman-Fried, claiming it made misleading and false assertions that gave the impression that its assets were protected by the FDIC.
Notably, the Federal Deposit Insurance Corporation is only responsible for protecting money that is kept in bank accounts that are insured by them, but doesn’t cover crypto or even stocks.
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