FTX’s Balance Sheet Was Bad

A
Matt Levine
Save Complete Collect Reco
Share on Twitter Copy link Share via
Article
If a troubled company has a few days to beg potential investors for a bailout before it files for bankruptcy, and it sends those investors its balance sheet so they can consider investing, and they all pass, and then the company files for bankruptcy, of course the balance sheet was bad. That is not a...

If a troubled company has a few days to beg potential investors for a bailout before it files for bankruptcy, and it sends those investors its balance sheet so they can consider investing, and they all pass, and then the company files for bankruptcy, of course the balance sheet was bad. That is not a state of affairs that is consistent with a pristine fortress balance sheet.

 Show More
Recommended by
Recommendations from around the web and our community.
B Gokce Idiman 2 months ago

''$16 billion of dollar liabilities and assets consisting mostly of some magic beans you invented and acquired for zero dollars? WHAT?'' Unbelievable and yet recurring story. a Netflix doc soon looms up...

Tren Griffin 2 months ago

This is solid writing by Matt Levine: "You cannot apply ordinary arithmetic to numbers in a cell labeled “HIDDEN POORLY INTERNALLY LABELED ACCOUNT.” The result of adding or subtracting those numbers with ordinary numbers is not a number; it is prison."

Ilan Strauss 2 months ago

Brilliant pieces.