FTX, which handles the restructuring processes, has released its first report on why its previous management team failed.
FTX, which went bankrupt in November, also helped usher in a new era in the crypto industry. In these days of intense legal processes and bankruptcy cases, the first report was published on why FTX went bankrupt and why the management team failed. There are some notable headlines in the report.
FTX Report: One Man
The team managing FTX’s bankruptcy process has released a report containing the mistakes and mistakes made by the previous management team.
The report includes headlines for why FTX failed. Sam Bankman-Fried’s having the last word on all important matters was cited as one of the major reasons for the failure.
The report also included an under-the-counter transaction made on 31 July 2019. In this transaction included in the report, Singh stated that he changed the code structure to allow Alameda to withdraw an unlimited amount of crypto assets from FTX. It was reported that various moves were made in order to save Alameda from the liquidation of FTX.
In addition, according to the report, it was stated that FTX’s liabilities to creditors are $ 12 billion. Sharing his views on the subject, John J. Ray III, Chief Executive Officer of FTX, said;
“11th. We are publishing the first report in the spirit of transparency that we have promised since the beginning of the departmental process. In this report, we detail our findings that FTX Group failed to enforce appropriate controls in areas critical to protecting its cash and crypto assets. FTX Group was tightly controlled by a small group of individuals who falsely claimed to run FTX Group responsibly, but who actually showed little interest in establishing surveillance or implementing an appropriate control framework. We are continuing our efforts to review the events that contributed to the decline of FTX and to identify and recover as much value as possible for creditors.”
FTX’s work was done through a team of experts in law, restructuring, forensic accounting, cybersecurity, computer engineering, cryptography, blockchain, and others.
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