Miles Deutscher’s Analysis on SBF’s FTX Insolvency Rumors

• Miles Speculates the fate of Almeda Research, and FTX is leading to insolvency.
• A leaked balance sheet showed FTX banking on unlocked FTT.
• CEO Caroline argued the sheet doesn’t reflect all assets.

In light of recent rumors circulating about Sam Bankman-Fried’s FTX’s insolvency, crypto analyst Miles Deutscher took the stage to analyze all that went haywire. He provided an in-depth analysis on his Twitter thread of all the suspicions leading to the accuracy of the said rumors.

The narrative begins with Alameda Research where a leaked Alameda balance sheet revealed a close association with FTX. Investors speculated that FTX largely relied on its sister company Almeda, as opposed to a fully autonomous asset, like fiat currency.

Furthermore, Miles shared that suspicions grew when Alameda’s CEO Sam Trabucco abruptly resigned, replaced by Caroline Ellison. Following that, a month later, Brett Harrison announced stepping down as President of FTX.

In defense, Alameda Research CEO Caroline Ellison replied to the balance sheet issue by tweeting that the balance sheet only shows half of the story and that Alameda has “>$10 billion in assets that aren’t shown there.” In addition, Almeda claims to have $14.6 billion of assets, against $8 billion in liabilities, $7.4 billion of which were loans.

Miles, like other crypto-Twitterati, shed light, drawing a comparison to Three Arrows Capital (3AC) and the crypto hedge fund Voyager that collapsed in June following bets on the unfortunate Terra-Luna coin and Celsius network. He informed how this led to FTX having to face legal issues in the form of a securities regulator probe, debating whether its crypto-earnings were secured.

Unfortunately, Binance’s CEO, Changpeng Zhao also took note of the balance sheet and liquidated his assets. Since the leaked balance sheet surfaced, FTT has lost $400 million in market capitalization as traders largely sold the token.