The insolvency specialists complain about the poor quality of internal controls and records at the crypto exchange.
(Photo: Reuters)
new York The bankruptcy specialists working to unravel the collapse of Sam Bankman-Fried’s FTX Group have said they are having trouble locating the company’s stated assets in the form of cash and cryptocurrencies. The experts also complain about a lack of internal control mechanisms and incomplete records at the collapsed crypto exchange operator.
“Only a fraction of FTX Group’s digital assets have been located and secured,” said John J. Ray, the group’s new CEO, in an affidavit filed Thursday in bankruptcy court.
So far, only around $740 million in cryptocurrencies have been secured in so-called cold wallets, i.e. cryptocurrency stores. It is also unclear how much cash the FTX Group had when it filed for bankruptcy. To date, the experts have only found around $560 million attributable to various FTX companies.
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