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News

FTX Debtors Release Second Investigative Report With $8.7 Billion Debt Of Exchange

June 26, 2023 - Around 3 mins mins to read

Key Points:

  • FTX Debtors issued a second investigation report revealing the commingling and misappropriation of client money at the defunct crypto exchange.
  • The report is part of an ongoing study to track and recover assets and maximize stakeholder recovery.
  • FTX.com owed consumers around $8.7 billion, and the CEO aims for transparency and maximizing recoveries.
On Monday, FTX Debtors issued a second investigation report showing the commingling and misappropriation of customer deposits at the now-defunct crypto exchange.
FTX Debtors Release Second Investigative Report With $8.7 Billion Debt Of Exchange

The report is based on the continuing study of FTX Debtors to track and recover assets and optimize recovery for stakeholders.

The FTX Debtors said that as of the petition date, the FTX.com exchange owed consumers roughly $8.7 billion. The FTX Debtors handled this job with the help of a team of legal, restructuring, forensic accounting, asset tracking and recovery, blockchain analytics, and other professionals.

The FTX Debtors’ Chief Executive Officer and Chief Restructuring Officer, John J. Ray III, stated:

“The release of this report furthers our stated objective of transparency, both about the facts uncovered about the operation of FTX.com and the important issues being navigated as we seek to maximize recoveries.”

FTX Debtors Release Second Investigative Report With $8.7 Billion Debt Of Exchange
FTX Debtors CEO John J. Ray III

The FTX Debtors issued the first report that highlighted and addressed control failings by the former management team of the FTX Group in crucial areas such as management and governance, finance and accounting, digital asset management, information security, and cybersecurity. The FTX Debtors anticipates releasing the third report in the series in August 2023.

The FTX Debtors’ study is continuing, and the report is part of a series on pre-petition events and concerns that occurred prior to the Chapter 11 proceedings.

As Coincu report, Bloomberg, Dow Jones, the New York Times, and the Financial Times have appealed Judge John Dorsey’s June 9 order, which allowed FTX to “permanently remove” individual consumers from all records of the secret name and safeguard FTX’s legal rights.

FTX Debtors Release Second Investigative Report With $8.7 Billion Debt Of Exchange

A legal counsel for the media outlet said that FTX is not entitled to a new and comprehensive exemption from bankruptcy disclosure rules just because its customers utilized bitcoins. The media has maintained that insolvent corporations often must reveal the names and amounts due to their creditors.

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Harold

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John J. Ray III

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.