- The new management of the exchange published a bankruptcy report
- It features SBF fraud details and financial data.
Yesterday, June 26, FTX released a bankruptcy report. According to him, the new management of the exchange managed to return $ 7 billion in liquid assets, which is quite enough to pay off most of the firm’s obligations to clients.
The full report is available as a downloadable document at link. It outlines all currently known details of the bankruptcy of the Sam Bankman-Freed conglomerate, as well as financial data.
Recall that the FTX Group owes its customers $8.7 billion. At the same time, most of the amount, namely $6.4 billion, is fiat and crypto assets deposited on the platform and misappropriated by the former management of the company.
In recent months, the exchange has filed several applications to return the conglomerate’s investments in some projects. We previously reported that FTX threatened K5 Global with a lawsuit if it does not return the invested funds.
As of the end of March, according to this report, FTX had about $2 billion on its balance sheet. Unfortunately, the new publication does not indicate how the company managed to return an additional $5 billion in three months.
Meanwhile, a June 26 report provides new details of the exchange’s bankruptcy case. In particular, some employees were forced to lie and cover fraud with customer funds.
Let’s take one of the firm’s junior lawyers as an example. He noticed that the North Dimension portfolio organization is being used to move borrowed capital out of the Bahamas unit.
Another lawyer, who is referred to in the report as “Lawyer-1”, in response to this, simply fired the “problem employee” without explaining the reasons. The papers set out several such precedents.
Thus, Sam Bankman-Fried was lying when he said that the “mixing” of funds from the exchange and clients was unintentional. Moreover, he spent $243 million on real estate in the Bahamas, and for the most part from the capital deposited on the platform.