Billion

In a shocking turn of events, a recent report from the FTX team conducting a thorough investigation into the failed exchange has revealed that the company owes its customers a staggering $8.7 billion.   
The report exposes the commingling and misappropriation of customer deposits, with approximately $6.4 billion in fiat currency and stablecoin being misused.   
Despite the dire circumstances, there is some hope, as $7 billion in liquid assets have been recovered so far, with the potential for further recoveries anticipated.   
According to the report filed on Monday, it becomes evident that the FTX Group, which once portrayed itself as a customer-focused leader in the digital age, was nothing more than a mirage.   
John J. Ray III, the CEO leading the recovery efforts, stated that from the very beginning of the FTX.com exchange, customer deposits were commingled with corporate funds and flagrantly misused under the guidance of previous senior executives.   
The report unveils a series of deliberate actions, including lying to banks and auditors, forging documents, and strategically relocating the FTX Group across jurisdictions to avoid detection of their wrongdoing.   
Months of analysis and forensic auditing have brought to light a culture of mismanagement within the company. The report highlights how company management, including at least one senior lawyer, knowingly misused customer funds.   
The activities conducted under founder and former CEO Sam Bankman-Fried's watch were found to be improper and deceptive. Bankman-Fried himself is facing multiple criminal charges, with a trial scheduled for October in New York.   
FTX is currently undergoing bankruptcy proceedings in Delaware, with John J. Ray spearheading the efforts to settle the exchange's affairs since its collapse in November.   
Despite the grim situation, there are indications that the exchange's operations may potentially be resurrected under the name FTX 2.0. This could signify a fresh start with enhanced safeguards and a commitment to rebuilding trust within the crypto community. 
The post <a rel="nofollow" href="https://optimisus.com/news/crypto-news/ftx-bankruptcy-team-reveals-8-7-billion-debt-owed-to-customers/">FTX Bankruptcy Team Reveals $8.7 Billion Debt Owed to Customers</a> appeared first on <a rel="nofollow" href="https://optimisus.com">Optimisus</a>.

FTX Bankruptcy Team Reveals $8.7 Billion Debt Owed to Customers

Optimisus

Other articles published on Jun 27, 2023

HSBC Introduces Bitcoin and Ethereum ETF Trading in Hong Kong

Breaking Minute: Nevada Regulator Requests Appointment of Trustee for Cryptocurrency Trustee Prim...

Cardano community concerned over Robinhood and Celsius selling ADA

Shiba Inu (SHIB) Back on Support: What's Next?

Singapore Releases New AI Toolkit to Encourage Fair and Ethical Use in Finance

Ethereum non-exchange addresses thrive as bulls and bears clash at $1,900

Join our free newsletter for daily crypto updates!