FTX Found the Money – Bloomberg

That is not the whole story: FTX has also recovered money by selling off businesses, by selling some of its venture capital portfolio, by seizing real estate and Robinhood Markets Inc. stock that Bankman-Fried and other had bought, by clawing back donations and investments. But the basic form of “FTX made long-term investments with customer money, which was stupid, and those investments lost value and customers demanded their money back, so FTX went bankrupt and just went into hibernation for a year, after which those investments paid off enough to pay back the customers” seems essentially correct.

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But more broadly, [Bankman-Fried] argued from the moment FTX collapsed that it had a liquidity problem, not a solvency problem, that there was enough money there to pay back all the customers, if they would just give him another week or two to work things out. They didn’t. But John Ray had another 18 months to find the money, and he did.

Source: FTX Found the Money – Bloomberg