The infamous crypto exchange FTX filed for bankruptcy in early February last year. Its top managers are awaiting trial. However, today brought good news for all clients of the trading platform.
At an April 12 hearing in the United States Bankruptcy Court for the District of Delaware, Sullivan & Cromwell lawyers representing FTX said the exchange had recovered approximately $7.3 billion in liquid assets.
Dietderich (debtor counsel) describes the first interim report filed earlier this week (thread here: https://t.co/7PgaoOfBtD).
He says the second report is underway, and will focus on failures of asset segregation.
— Molly White (@molly0xFFF) April 12, 2023
They also revealed that FTX is considering restarting the company in the second quarter of 2024. New FTX CEO John Ray mentioned this scenario in a January interview. He said that a specially created working group is studying the question of whether the revival of the exchange can bring more benefits to users compared to the liquidation of FTX assets.
This week, the new leadership of FTX released a report that should shed light on the reasons for the collapse of the crypto empire. The 45-page document is based on the analysis of a huge amount of data and more than a million documents. It also includes interviews conducted with 19 former FTX employees.
The report highlighted the company’s lack of risk management, inadequate record keeping, poor cybersecurity, and FTX founder Sam Bankman Freed’s too big a role in all decision making. In general, a small top of the company’s top managers carried out total supervision, while not systematizing work processes in any way. It was run by inexperienced fresh-college executives Sam Bankman-Fried, Gary Wang, and former FTX CTO Nishad Singh.
John Ray noted that the FTX Group “failed to put in place appropriate controls in areas that were critical to the protection of clients’ funds and crypto assets.”
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