Bankrupt exchange FTX owes customers $8.7 billion as per new investigative report
|- FTX debtors released a second report on Monday, which details the commingling and misuse of customer deposits.
- Led by CEO John Ray, the debtors noted that FTX currently owes them $8.7 billion.
- Disgraced former CEO Sam Bankman Fried is set to face trial in four months after losing motions to dismiss criminal charges last month.
FTX debtors who took the hit from the cryptocurrency exchange's bankruptcy in November 2021 are advancing in their attempt to recover their losses. In line with the same, a new investigative report from the affiliated group has revealed the total amount that the exchange owes them.
FTX debtors detail the fraud
According to a new investigative report, debtors not only detailed the commingling and misuse of customer deposits by the exchange's previous management team but also the total amount they rightfully deserve. As per the report, the debtors are owed about $8.7 billion to date.
The debtors, led by the current Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors, John Ray, are focusing their efforts on maximizing recovery. Iterating the same, Ray stated,
"The image that the FTX Group sought to portray as the customer-focused leader of the digital age was a mirage. From the inception of the FTX.com exchange, the FTX Group commingled customer deposits and corporate funds, and misused them with abandon at the direction and by the design of previous senior executives. We will continue to report our analysis and findings as our work progresses, and remain committed to recovering as much value as possible for creditors."
The findings of this report will be helpful to the team in ascertaining that the shareholders are made whole by the bankrupt exchange. The next report is expected to be published sometime next month.
FTX debtors are moving fast to collect and publish all the information before Sam Bankman Fried's trial begins on October 2. The disgraced former CEO has been attempting to throw out many of the charges filed against him by the authorities.
Last month, Bankman-Fried filed motions to dismiss the criminal charges against him, which included the allegations that he stole from depositors. However, federal prosecutors responded to these motions claiming that they were meritless in a 100-page filing.
They further stated,
"The charges track the relevant statutes, and the defendant's alleged misconduct falls within the heartland of what these statutes prohibit."
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