A chilling new report from FTX ‘s bankruptcy team has shed light on the crypto exchange’s scandalous management of user funds. FTX’s former executives mixed customer deposits with company funds, creating a financial nightmare.
More truths about FTX’s downfall!
The FTX Group’s carefully constructed mirage as the customer-centric leader of the digital age turned out to be an illusion. According to John J. Ray III, SBF’s successor,
“FTX.com has commingled customer deposits and company funds,” he said following publication of the report.
Creditors revealed that FTX.com owed around $8.7 billion to its customers before declaring bankruptcy. Nearly $6.4 billion, in the form of fiat currency and stablecoins, was worryingly misappropriated. To date, some $7 billion in liquid assets have been recovered.
But the revelations don’t stop there. The report also sheds light on FTX’s secret funding of crypto media outlet The Block. False and misleading statements by the exchange, lack of deposit protection and misuse of funds for donations, investments, acquisitions and even real estate in the Bahamas are also mentioned. The report also mentions reprisals against a courageous employee who dared to raise concerns.
A third and final report is due in August 2023, promising to reveal even more disturbing truths about FTX’s downfall.
This shocking revelation raises serious questions about the transparency and accountability of crypto exchange platforms. Users and investors need to be vigilant and ensure the safety of their funds before entrusting their trust to a platform.