FTX Attorney Claims Loss of Significant Amount of Crypto

FTX Attorney Claims Loss of “Significant Amount” of Crypto Exchange Assets

Attorney James Bromley, hired by the new management of the FTX cryptocurrency exchange, said a “significant amount” of the platform’s assets are missing and may have been stolen, reports The Wall Street Journal. The collapse of the company was caused by a management crisis and the free treatment of its employees with customer deposits.

Mr Bromley criticized what was happening at FTX – it was a company that operated globally but was run as the personal fiefdom of his former boss Sam Bankman-Fried. The platform was controlled by inexperienced individuals, some or all of whom, the new lawyer admitted, were acting in bad faith.

Modern legislation regulating the activities of cryptocurrency financial organizations is extremely imperfect – their clients are deprived of state protection: there is no deposit guarantee scheme that will help people to repay their investments in the event of banks and brokerage houses collapsing. Now the bankruptcy court is trying to deal with the consequences of the collapse of FTX.

FTX’s new management said the balance sheet, which shows the company’s working capital and liabilities to customers, would not be ready until January. Some subsidiaries turned out to be solvent – $1.4 billion in total funds were discovered. Bahamas authorities seized FTX Digital Markets digital assets located in their jurisdiction, which their owners considered illegal . At the same time, the access keys to these assets remain available to FTX management.

The total number of creditors of the crypto exchange may reach one million and the total debt continues to be calculated. According to preliminary data, only the platform’s top 50 customers owe around $3.1 billion. Lawyers also insist on maintaining the salaries of the company’s remaining employees and continuing to bill suppliers whose goods and services are necessary for FTX’s continued existence are .


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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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