After the bankruptcy of FTX, one of the world’s leading cryptocurrency exchanges, the court process began. There are remarkable details in the court files.
of FTX 17 November In official documents submitted to the Delaware court on to poor cash management and to the distortions attention was drawn.
Founder and former CEO Sam Bankman-Fried from Alameda Research, the company’s sister company $4.1 billion loan turned out to have. $4.1 billion of the loan SBF’s personal spending of $1 billion when stating that for $543 million Nishad Singh, director of engineering received, 55 Million dollarsHead of FTX Digital Market Ryan Salamreceived and the remainder 2.3 billion dollars subsidiaries of FTX To Euclid Way and Paper Bird reported to have been given.
One of the most striking details in the documents was the company’s digital asset reserves. The documents stated that the administration was only able to secure some of the digital assets they hoped to recover. In the reserves reached worth $740 million Although there is a crypto digital asset, it is not yet clear which group the funds belong to. In cold wallets $560 million current deficit of FTX while cash is available 8 billion dollars determined.
Also, like the company’s use of common email addresses for critical passwords and platforms. major cyber security vulnerabilities also included in the documents. It was also among the information found in the document that the company used software to hide the misuse of customer funds.
The new CEO is John J. Ray. company’s past management in incomparable incompetence underlined that. When analyzing the complex network of multiple companies, the CEO four main groups stated that it was managed in For all four groups controls such as accounting, auditing, cyber security Expressing that he will try to re-establish the cash controls, the CEO too weak He said he was staying.