FTX Bankruptcy Scandal: $8.7B Owing to Customers as Execs Conceal Misuse

• FTX owes its customers $8.7 billion due to misuse of funds.
• Senior executives were aware of and concealed the information.
• So far, $7 billion in liquid assets has been recovered with ongoing efforts to recover the rest of it.

FTX Bankruptcy Scandal Deepens

The latest report discloses that FTX owes its customers $8.7 billion, and senior executives were aware of and concealed the information. According to the report, $7 billion in liquid assets has been recovered so far and the team tries to recover the rest.

Misuse of Funds

Last year, Sam Bankman Friend’s FTX empire collapsed sending the entire crypto market plummeting. Since then, a series of discoveries have been reported with the recent update disclosing the amount owed to customers. According to the report , FTX owes customers $8.7 billion after misappropriating and misusing customers’ deposits. This was concealed by senior executives as early as August 2022.

Recovery Efforts

A report filed on Monday reveals that about $6.4 billion owed customers is in fiats and stablecoins, all misappropriated. Interestingly, it is reported that these were not done by accident but carried out at direction of previous senior executives John J Ray III is now leading efforts to recover money for creditors . He explained that: „The image that the FTX Group sought to portray as customer-focused leader of digital age was a mirage.“ From inception exchange commingle funds with abandon“. So far they have managed to recover 7 Billion in liquid assets which are still trying trace substantial asset source or differentiate between operating fund deposits made by customer .

Criminal Charges

Bankman-Fried is facing several criminal charges and is set to appear in New York for trial in October..On Feb 9th 2022 ,SBF reportedly gave false testimony senate hearing concerning practices protect consumer money . Caroline Ellison former CEO trading affiliate Alameda Research had prior knowledge about concealment actions taken by Senior Executives .

Conclusion

The scandal continues deepen with no end sight yet but recovery effort ongoing hopefully debtors be able get back their money soon . Follow us for more crypto news !