FTX Debtors said on April 9 that it had published a report that “identifies and analyzes control failures” by Sam Bankman-Fried and his colleagues when they ran the crashing cryptocurrency exchange. John Ray, chief executive of FTX Debtors, said that FTX Group “was tightly controlled by a small group of people who falsely claimed they were running it responsibly.”
More than a million documents reviewed
FTX Debtors, an organization comprising entities that filed for bankruptcy in the US, has released a report that “identifies and analyzes control failures” by Sam Bankman-Fried and his management team. According to the organization, the report is based on information collected from terabytes of data and more than a million documents that were reviewed. The report is also based on the testimony of some 19 former FTX employees.
As explained in the April 9 Press release, the report is the work of professionals including legal, cybersecurity, and blockchain experts. In comments accompanying the report’s release, John Ray, chief executive officer and chief restructuring officer, said:
We are publishing the first report in the spirit of transparency we have promised since the beginning of the Chapter 11 process. In this report, we detail our findings that FTX Group failed to implement appropriate controls in areas that were critical to safeguarding cash and assets. cryptoassets. FTX Group was tightly controlled by a small group of individuals who falsely claimed to run FTX Group responsibly, but in reality showed little interest in instituting oversight or putting in place an adequate control framework.
Ray also vowed to continue to review the factors that led to FTX’s collapse, as well as to identify and recover “the greatest possible value for creditors.”
Report first in a series ‘on events leading up to the petition’
Before revealing the latest report, FTX Debtors had revealed in a previous filing that an overview of the collapsed crypto exchange’s assets and liabilities showed a gap of $6.8 billion. At the time, FTX Debtors also said they had discovered significant financial and accounting discrepancies.
Meanwhile, in its press release, FTX Debtors suggested that the recently filed report would become the “first in a series on pre-petition events and issues that preceded Chapter 11 cases.”
What are your thoughts on this story? Let us know what you think in the comments section below.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
