• FTX has revealed a massive shortfall in crypto and fiat currency holdings, resulting in billions of customer funds missing from both FTX and its US subsidiary FTX US.
• John J. Ray III, FTX’s Chief Restructuring Officer and CEO, reported inadequate record-keeping practices of the prior management with commingled assets and incomplete or absent records.
• The public is encouraged to participate in a transparent bankruptcy proceeding to maximize the recovery of former customers‘ funds.
FTX: $8.9 Billion Customer Funds Missing
FTX has revealed a „massive shortfall“ in crypto and fiat currency holdings with billions in customer funds missing from both FTX and its US subsidiary FTX US. New documents show the extent of the losses incurred by Sam Bankman-Fried’s crypto empire, with only $694 million in liquid assets found compared to a net deficit of $8.6 billion.
Inadequate Record Keeping Practices
John J. Ray III, FTX’s Chief Restructuring Officer and CEO, reported inadequate record-keeping practices of the prior management with assets highly commingled while books and records are incomplete or totally absent. Alameda Research reportedly borrowed around $9.3 billion from customer accounts prior to bankruptcy, leaving only around $475 million cash on hand as of Jan 31st.
Public Participation Encouraged
The public is encouraged to participate in a transparent bankruptcy proceeding to maximize the recovery of former customers‘ funds previously invested into Sam Bankman-Fried’s crypto empire – including some prominent Wall Street investors such as Anthony Scaramucci who made ties with FTX before their collapse rocked the crypto space it its core..
Uncertain Future for FTT Token
For some reason, the native exchange token (FTT) still trades above $0 at $1.26 despite other major firms connected to Sam Bankman-Fried falling apart due to this financial crisis caused by his own empire’s mismanagement.
Sam Bankman-Fried: Crypto’s Fallen Hero?
The fall of Sam Bankman-Fried left many wondering how one man could have so much control over such an influential part of our economy; read more about this fascinating story here: Sam Bankman-Fried: Crypto’s Fallen Hero?