### Bankruptcy documents show USD1.4 billion in BTC liability vs. ZERO BTC Tokens. Was FTX selling ‘fake’ Bitcoin tokens? This raises concerns about whether the practice is rampant in the industry. 

The Financial Times [reported](https://www.ft.com/content/0c2a55b6-d34c-4685-8a8d-3c9628f1f185) that FTX’s bankruptcy documents listed zero bitcoin assets on the back of $1.4 billion worth of BTC liabilities. 

It’s not clear whether the BTC tokens were there before and were just moved out or sold; or, if there were never any bitcoins acquired to back the customers purchases on the exchange. 

It would seem also that FTX still maintained BTC amounts in customer’s wallets. In that case, those would be nothing more than a tally, without any actual bitcoins in the FTX wallet/s. 

<blockquote className="twitter-tweet" data-theme="dark"><p lang="en" dir="ltr">FTX had ZERO <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> assets listed in bankruptcy docs, yet it had $1.4B in <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> liabilities - Financial Times <br/><br/>💥THEY SOLD YOU FAKE BITCOIN!</p>&mdash; Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) <a href="https://twitter.com/BTC_Archive/status/1591839060083064832?ref_src=twsrc%5Etfw">November 13, 2022</a></blockquote>  

 
The Financial Times shared a screenshot of FTX assets in their [article](https://www.ft.com/content/0c2a55b6-d34c-4685-8a8d-3c9628f1f185) on FTX bankruptcy documents: 

[![docs](https://cfrimages.sgp1.cdn.digitaloceanspaces.com/7ab64a3b-6ce0-47cc-96ac-5e2d2a8c5d6c.png)](https://cfrimages.sgp1.cdn.digitaloceanspaces.com/7ab64a3b-6ce0-47cc-96ac-5e2d2a8c5d6c.png)


Strictly speaking, the above is more suggestive than conclusive since there could have been errors in the tallying of assets. However, what we know for sure is that FTX did not have the assets to match its liabilities. Now the worry is, who else among centralized exchanges has similar or the same practice? 

Today, the twitterverse betrays a very fragile in confidence centralized exchanges by crypto users. Speculation has been rampant on when (not if) the next centralized exchange will fall and who will it be. 

The worries are larger when an exchange suspends trading, goes under maintenance or is discovered to have had past transactions with FTX. It seems like the slightest bad news may trigger a bank run. 

This is a developing story. We will continue to monitor the investigations to get a better understanding of the behavior of centralized exchanges. 

For everyone’s safety, we recommend that everyone move their funds out of exchanges until the fallout from the FTX bankruptcy becomes clearer, and until the stability of all exchanges becomes clearer. 

For those new to crypto, we have a basic guide on self-custody [here](https://www.cryptoflash.report/articles/how-to-take-self-custody-of-your-crypto).

Bankruptcy documents show USD1.4 billion in BTC liability vs. ZERO BTC Tokens. Was FTX selling ‘fake’ Bitcoin tokens? This raises concerns about whether the practice is rampant in the industry. 

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