FTX Trading Ltd. and its affiliated debtors have published a report detailing the misuse of customer deposits at FTX.com. According to the report, FTX.com owed its customers approximately $8.7 billion at the time of the filing. To investigate the matter and maximize recoveries for stakeholders, the FTX Debtors enlisted the help of experts in various fields such as legal, restructuring, forensic accounting, asset tracing, and blockchain analytics.
The main goal of the report is to provide transparency regarding the operation of FTX.com and shed light on the mishandling of customer deposits. The report states that the previous management team of FTX Group was responsible for commingling customer deposits with corporate funds and misusing them without restraint. The FTX Debtors express their commitment to uncovering the truth and recovering as much value as possible for the creditors.
The FTX Debtors are continuing their review, and this report is part of a series that focuses on events and issues that occurred prior to the Chapter 11 cases. In a previous report, control failures in critical areas such as management, finance, accounting, digital asset management, and cybersecurity were identified and discussed. The FTX Debtors plan to release a third report in August 2023.
For those interested, U.S. Bankruptcy Court filings and other documents related to the court proceedings, including all reports produced by the FTX Debtors, are accessible on a dedicated website provided by the FTX Debtors. https://cases.ra.kroll.com/FTX/