I'd argue balance sheet insolvency is really the most colloquial definition insolvency. You can always sell assets (at a haircut of course) to evade cash flow insolvency (arguably that's closer to illiquidity really), but you can't do anything to get out of balance sheet insolvency except restructure your liabilities.
Alameda being in balance sheet insolvency would depend on their assets taking enough of a hit to wipe out the equity buffer.
To Doug's point the junk tokens are likely at book value on their balance sheet
> To Doug's point the junk tokens are likely at book value on their balance sheet
The linked article in turn links to coin desk which writes
>> Also, token values may be low. In a footnote, Alameda says “locked tokens conservatively treated at 50% of fair value marked to FTX/USD order book.”
That suggests to me the unlocked coins are on the balance sheet at market value and the locked at a 50% haircut.
> He chose instead to pursue a psychology degree at what is now Wayne State University in Detroit. After two years, he married, dropped out of college, and worked as a gas station attendant in Buffalo, New York. By 1930 he had risen to the rank of regional gas station manager.
> McGregor decided to resume his studies while also working part-time. He completed a B.A. in 1932 from Wayne State University.
> Soon after graduation, he entered Harvard University where he studied for three years, earning an M.A. and Ph.D. in psychology.