Billion

In what is being called substantial progress in asset recovery, the new FTX management has recovered $7 billion in liquid assets.&nbsp; 
The recovery comes against the backdrop of a new investigative report that has been released by the now-collapsed cryptocurrency exchange.&nbsp; $7 Billion In Liquid Assets Recovered&nbsp; 
The FTX collapse was one of the most controversial developments in the cryptocurrency industry, having rocked the entire ecosystem. The exchange was once the blue-eyed boy of the industry but was eventually exposed as one of the biggest fraudulent operations in the industry when it filed for Chapter 11 bankruptcy last year. However, there has been significant progress since then, with the new FTX management announcing the recovery of $7 billion in liquid assets, calling the development “substantial progress” in asset recovery.&nbsp; 
The new FTX management also published an investigative report, with the new CEO laying bare the reality of the exchange.&nbsp; The FTX Report&nbsp; 
According to the report, the Sam Bankman-Fried-led crypto conglomerate made several false statements to banks about accounts related to the use of trading firm Alameda Research’s accounts for customer transactions. This was after the banks in question raised several queries about Alameda Trading’s wire transfers and started rejecting them. The report documented a specific instance where a bank representative asked if an Alameda Research account that received customer deposits would be used to settle trades for the FTX exchange. In response, the report alleges that a senior FTX executive directed an Alameda employee to lie and state that customers occasionally end up confusing FTX and Alameda but that all incoming and outgoing wire transfers were used to settle Alameda trades.&nbsp; 
The report also alleged that FTX created a new entity called North Dimension Inc. which was falsely advertised as a crypto trading firm with an average monthly trading volume of $10 million and 2000 counterparties. However, in reality, North Dimension Inc. was a shell company that FTX utilized to receive customer deposits and fund withdrawals. When an attorney discovered this, the company ended up firing the attorney. John Ray III, the CEO and Chief Restructuring Officer of FTX entities, stated,&nbsp; 
“From the inception of the FTX.com exchange, the FTX Group commingled customer deposits and corporate funds and misused them with abandon at the direction and by the design of previous senior executives.” A Web Of Lies&nbsp; 
The complicated relationship between FTX and Alameda Research was the primary reason behind the unraveling of the Sam Bankman-Fried-led crypto empire. According to the report, the former CEO of Alameda Research, Caroline Ellison, in private notes written in March 2022, estimated that FTX.com alone had a cash deficit of over $10 billion. According to Ray, the report is in line with the new management’s objective of greater transparency. He further added that FTX’s reputation as a customer-focused entity was a mirage, stating,&nbsp; 
“The release of this report furthers our stated objective of transparency. The image that the FTX group sought to portray as the customer-focused leader of the digital age was a mirage. We will continue to report our analysis and findings as our work progresses and remain committed to recovering as much value as possible for creditors.”&nbsp; 
Subsequent reports are expected to be released at regular intervals, with later reports bringing in further revelations about FTX and its day-to-day operations.&nbsp; 
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

New FTX Management Team Recovers $7 Billion In Liquid Assets

Crypto Daily™

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