The new management of FTX Group announced that it has made significant progress in securing assets. Meanwhile, the current CEO stated that customer and company funds have been mixed since the inception of FTX. He also said that the former management misused client funds.
FTX has regained $7 billion in liquid assets!
The new management team of bankrupt crypto conglomerate FTX Group has announced that it has made “significant progress” in recovering its assets. Accordingly, the management said that it has recovered approximately $7 billion in liquid assets so far. FTX’s current management team released a new report on Monday. According to the report, the exchange FTX.com owed customers approximately $8.7 billion when it filed for bankruptcy last year, based on ongoing analysis. The report noted that the vast majority of the deficit (more than $6.4 billion) was in the form of incorrectly registered fiat and stablecoins.
John J. Ray III blames former FTX management
The report also cited that Sam Bankman-Fried had lied to a bank about the nature of the FTX group and the bank account Alameda used to process client funds. Currently, John J. Ray III is chief executive and restructuring officer of several bankrupt FTX entities. The manager made a statement on the subject. In this context, the CEO of FTX underlined the following points.
The image FTX Group sought to portray as the customer-focused leader of the digital age was a mirage. Since the inception of the FTX.com exchange, the FTX Group has mixed customer deposits and institutional funds. He also abused them at the direction and design of previous top executives.
The report includes interesting details
The new report, the product of months of analysis and forensic review, paints a picture of how company management and at least one senior lawyer knowingly misappropriated client money, saying they “lie to banks and auditors, forge documents, and make a sustained effort to prevent and ensure their wrongdoing.” “They moved the FTX Group from jurisdiction to jurisdiction by flying from the U.S. to Hong Kong and the Bahamas.”
The 33-page review is the second after Ray’s first review in April, which included a series of disclosures for improper activities under the oversight of founder and former CEO Sam Bankman-Fried. Bankman-Fried is facing a series of charges for a trial that will take place in New York in October. The company is currently in the middle of bankruptcy proceedings in Delaware. As you follow on Kriptokoin.com, Ray has been trying to get the stock market back in order since the crash. Along these lines, there are some hints that their operation may be restarted as FTX 2.0.
Those trying to trace FTX transactions and finances have found the task “extraordinarily difficult”, the report said. The company routinely misled its banking partners about how it used accounts. A former employee of FTX’s Alameda Research arm made disclosures to the bankruptcy team. In that regard, he said the company “doesn’t make any meaningful distinctions between client funds and Alameda funds.”
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