FTX Bankruptcy Report Highlights Management Failures by Sam Bankman-Fried – Featured Bitcoin News


FTX Debtors said on April 9 that it had released a report that “identifies and discusses management failings” by Sam Bankman-Fried and his team when running the now-defunct cryptocurrency exchange. John Ray, the CEO of the FTX Debtors, said the FTX Group “was tightly managed by a small group of people who falsely claimed to be responsible.”

Over One Million Documents Examined

FTX Debtors has released a report that “identifies and discusses control issues” by the leadership of Sam Bankman-Fried. According to the organization, its findings are based on terabytes of data and more than one million documents that were reviewed. The report also incorporated the testimonies of 19 former FTX employees.

As mentioned in the April 9 press release, the investigation was conducted by a team of legal, cybersecurity, and blockchain specialists. John Ray, CEO and Chief Restructuring Officer, remarked:

We are introducing this report in the spirit of transparency that we promised since the beginning of the Chapter 11 process. In this report, we provide details on our discoveries that FTX Group failed to implement the correct controls in areas that were essential for safeguarding cash and crypto assets. FTX Group was tightly managed by a small group of people who falsely professed to manage FTX Group responsibly, but in fact showed little interest in setting up oversight or implementing an appropriate control framework.

Ray also promised to keep reviewing the reasons behind FTX’s downfall as well as to locate and reclaim “as much value as possible for creditors.”

Report First in a Series ‘Regarding Pre-Petition Events’

Ahead of unveiling the report, FTX Debtors had revealed in an earlier presentation that a review of the defunct crypto exchange’s assets and liabilities showed a $6.8 billion disparity. At the same time, FTX Debtors also reported uncovering significant financial and accounting discrepancies.

In its press release, FTX Debtors indicated the newly released report would become the “first in a series regarding pre-petition events and issues that preceded the Chapter 11 cases.”

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic struggles of some African countries as well as how digital currencies can provide Africans with an escape route.

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