The epic of the bankrupt crypto exchange FTX is continuously unfolding with discoveries. The United States Department of Justice has in advance started an inquiry on the $400M exploit that resulted in the drainage of assets from the possession of the crypto exchange. It is up to the court to eventually determine whether the exploit was carried out by hackers leveraging the chaotic collapse of FTX or whether some inside job was going on at its back.

FTX US Asserts that Additional $90M Worth of Assets Is Missing

However, the formal committee of unsecured creditors of the crypto exchange has shared the latest news during a conference. As per the committee, the cumulative assets drained during exploits following the bankruptcy filing are just $10M below half a billion. This sum indicates a huge proportion of up to $5.5B present in the liquid assets as pointed out by the debtors.

Unluckily, the above-mentioned figures denote the assets possessed by the crypto exchange in general. Nonetheless, the US subsidiary of the beleaguered crypto exchange has just identified a $181M amount in liquid assets. Apart from that, $88M has in advance been put in cold storage that is under the debtors’ control. The other $90M appears to have vanished away.

FTX’s latest CEO named John J. Ray III is responsible for the crypto exchange’s restructuring procedure because of his extensive expertise related to analogous bankruptcies like Enron. As per him, they are making significant progress in their endeavors to enhance recoveries. Nonetheless, he added, there is the requirement of a Herculean effort to be made by the team to investigate the initial information.

Ray requested the stakeholders to comprehend that the respective information is still initial and can be changed. According to the bankruptcy expert, they will offer extra information with time. The provisional CEO has in advance criticized the crypto exchange for almost-unprecedented deficiency in its due diligence and corporate oversight.

In line with the abrupt nature of the accounting of the platform, Mr. Ray’s evaluation of the endeavors required to find out the respective assets is quite convincing. The provisional CEO additionally asserted that the team is making a great struggle to organize everything out of the FTX mess. Ray claimed that they will perform every required action that they can to recover the assets of the platform and deliver them to the creditors.

Former FTX Executives Expressed Apprehensions over the Use of Client Funds, Court Documents Reveal

On the other hand, the authorities are of the view that billions of dollars were siphoned by Sam Bankman-Fried (the former CEO of FTX). As per the officials, the FTX founder mismanaged the client funds for political donations, purchasing extravagant real estate, as well as carrying out trading at FTX’s sister company Alameda Research.

Up till now, 2 officials from FTX (including Nishad Singh and Gary Wang) and Caroline Ellison (the former CEO of Alameda Research) have assisted the authorities in the case. As per the former executives of the aforementioned firms, they witnessed a $5B slumps in FTX’s value and cautioned Bankman-Fried however he did not pay any attention to that.

In addition to this, nearly a $13B amount was given to Alameda Research as a loan and was not returned. As mentioned in the court documents, the former FTX CEO was much concerned but thought that a jump in equity as well as a rise in crypto price could alleviate the issue. However, this was not translated into reality and the consumers increased fund withdrawals in the early days of November.

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