FTX Bankruptcy Team Says the Exchange Owed Customers $8.7B

A caller study from the FTX squad that’s digging done the fiscal guts of the failed speech said the institution owed its customers $8.7 cardinal aft commingling and misusing their deposits.

About $6.4 cardinal of the wealth the FTX.com speech owed its customers was “in the signifier of fiat currency and stablecoin that had been misappropriated,” according to the study filed connected Monday. About $7 cardinal successful liquid assets person been recovered truthful far, and those searching the company’s assets “anticipate further recoveries.”

“The representation that the FTX Group sought to represent arsenic the customer-focused person of the integer property was a mirage,” said John J. Ray III, the CEO who is trying to retrieve wealth for creditors, successful a statement. “From the inception of the FTX.com exchange, the FTX Group commingled lawsuit deposits and firm funds, and misused them with wantonness astatine the absorption and by the plan of erstwhile elder executives.”

A merchandise of months of investigation and forensic auditing, the caller study paints a representation of institution absorption and astatine slightest 1 elder lawyer knowingly misusing lawsuit money, saying they “lied to banks and auditors, executed mendacious documents, and moved the FTX Group from jurisdiction to jurisdiction, taking formation from the United States to Hong Kong to the Bahamas, successful a continual effort to alteration and debar detection of their wrongdoing.”

The 33-page reappraisal is the 2nd filed by Ray aft he’d elaborate an initial introspection successful April that provided a fig of revelations of improper enactment nether laminitis and erstwhile CEO Sam Bankman-Fried’s watch. Bankman-Fried is facing a fig of transgression charges acceptable for an October proceedings successful New York.

The institution is present successful the midst of bankruptcy proceedings successful Delaware. Ray has been trying to settee the exchange’s affairs since its November collapse, and determination person been immoderate hints that its operations could beryllium restarted arsenic FTX 2.0.