Investigation report reveals $8.7 billion debt owed to consumers by the exchange, with $6.4 billion attributed to misuse of stablecoins and fiat cash.
According to a recent investigation report, the new management team at the defunct exchange has successfully recovered $7 billion. The report also highlights that the new administration has made significant strides in reclaiming lost assets, indicating substantial progress in their efforts.
A recently released investigation report reveals that the exchange currently owes its consumers a significant debt of $8.7 billion. This amount was accumulated at the time of the bankruptcy filings last year. The research also indicates that the misuse of stablecoins and fiat cash contributes to a substantial portion of the debt, amounting to $6.4 billion.
Significant progress has been made thus far:
The downfall of FTX is undeniably the most controversial incident in the relatively short history of cryptocurrencies. Once considered indispensable, the cryptocurrency exchange has now been exposed as a significant scam. Ultimately, at the end of last year, they filed for Chapter 11 bankruptcy.
Throughout the bankruptcy procedures, there have been intriguing developments. As per a recently published investigation report, the new management team of FTX has successfully recovered $7 billion. However, the management team refers to these reclaimed assets as a “substantial progress” achieved thus far.
Nevertheless, the most recent analysis brings forth some astounding revelations. The first piece of shocking news is that there is still an outstanding debt of over $8.7 billion owed to clients. The newly appointed CEO of FTX, John Ray III, also acknowledged the harsh reality surrounding the exchange.
Ray expressed, “By releasing this report, we are advancing our commitment to transparency. It is now clear that the image FTX group projected as a customer-focused leader of the digital age was nothing more than an illusion.”
The former CEO of FTX is currently facing multiple charges brought by U.S. authorities. In addition, FTX has recently filed a lawsuit against K5 Global seeking the recovery of a $700 million payment made by the former CEO of SBF.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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