- A new report published by FTX investigates the financial inner workings of the failed exchange and states that it owes its customers $8.7 billion.
- The company is currently in bankruptcy proceedings in Delaware. The new CEO, Ray, has been trying to get the exchange back on track since its collapse in November.
- According to information received earlier this month, FTX’s new management team plans to relaunch the exchange in the third or fourth quarter of 2023.
Cryptocurrency exchange FTX reported in its new report that it has collected $7 billion of the $8.7 billion debt owed to its customers.
FTX Releases a New Report
A new report published by the bankrupt cryptocurrency exchange FTX investigates the financial inner workings of the failed exchange and states that it owes its customers $8.7 billion. According to the report presented on Monday, approximately $6.4 billion of the debt owed by FTX exchange’s customers is stated to be “used fiat currency and stablecoin.” So far, approximately $7 billion in liquid assets have been found, and investigators examining the company’s assets have stated that “additional recoveries are expected.”
CEO John J. Ray III, who is trying to raise money for creditors, said in a statement:
“The image presented by FTX Group as the customer-focused leader of the digital age was a dream. From the beginning of FTX exchange, FTX Group combined customer deposits and company funds and arbitrarily misused them under the instruction and design of previous senior executives.”
The new report, a product of months of analysis and financial auditing, states that at least one senior attorney knowingly misused customer funds and “lied to banks and auditors, issued fake documents, and continuously moved from the United States to Hong Kong and the Bahamas to prevent and avoid the detection of FTX Group’s wrongful transactions.”
The 33-page review, presented as a second detailed review after Ray’s initial presentation in April, has revealed a series of misconduct under the supervision of founder and former CEO Sam Bankman-Fried. Bankman-Fried faces a series of charges to be heard in New York in October.
Preparing for FTX 2.0?
The company is currently in bankruptcy proceedings in Delaware. Ray has been trying to get the exchange back on track since its collapse in November, and there are some clues that its operations could be relaunched as FTX 2.0.
According to information received earlier this month, FTX’s new management team plans to relaunch the exchange in the third or fourth quarter of 2023.
Following the news of the $7 billion funds, FTX Token (FTT), launched by FTX, has risen by more than 32%. The current price of FTT is $1.27. Before the FTX collapse, FTT token was trading above $25.
