FTX has recovered $7B in assets so far, has almost $2B to go to cover misappropriations

FTX Retrieves $7 Billion in Liquid Assets

So far, FTX has retrieved around $7 billion in liquid assets, and the search for more is still ongoing, CEO John Ray declared in the FTX Debtors’ second interim report, published on June 26.

The FTX Debtors, consisting of FTX and its affiliates, estimate that the amount of customer assets misappropriated is $8.7 billion. The majority of that sum, roughly $6.4 billion, was in fiat and stablecoins, which FTX did not separate in its records.

The report alleged that the previous FTX leadership was not careless in their handling of customer deposits, but rather deliberately hid their activities with the help of a senior FTX Group lawyer and other people. Thus, as a consequence:

FTX Senior Executives Monitor Undisclosed Fiat Currency Liabilities

The report illustrated the magnitude of the disorder by presenting a chart of the FTX customer funds that had been withdrawn from primary deposit accounts “as identified to date”. It was stated that these withdrawals were enabled by banks being misled regarding their purpose and other fraudulent statements.

The report stated that the misrepresentation even extended to statements made by former CEO Sam Bankman-Fried (SBF) to the United States Congress. It was mentioned numerous times that the unidentified FTX senior attorney was involved, and it was highlighted that the attorney had dismissed a junior lawyer who had expressed concerns about the company’s deceptive tactics. Furthermore, it was claimed that the misappropriated funds had been used for political and charitable contributions, as well as investments and purchases of luxury real estate.

SBF intended to hold everyone else accountable but himself, according to leaked Congressional testimony.

The FTX Senior Executives [SBF, Gary Wang and Nishad Singh] and [Alameda Research CEO Caroline] Ellison monitored the amount of undisclosed, fiat currency liabilities to customers of FTX.com, which had arisen from the amalgamation and misuse of customer deposits, as stated in the report. Their estimations varied from $8.9 billion to $10 billion, which is a bit higher than the FTX Debtors’ assessment.

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