TechFlow news — According to prepared testimony from FTX's current CEO and Chief Restructuring Officer, John J. Ray III, a "significant portion" of FTX’s assets remain "missing, misappropriated, or inaccessible." His team continues the arduous forensic work to trace the whereabouts of all assets. To date, the new leadership has recovered over $1 billion in digital assets, though this represents only a fraction of the billions of dollars owed to customers and other creditors. FTX US did not operate independently from its parent company, FTX.com, making it necessary for FTX US to file for bankruptcy protection as well. FTX lacked security controls, allowing Alameda to borrow FTX funds "without any effective constraints," and it had no reliable financial reporting or independent governance.
Additionally, he confirmed that FTX spent approximately $5 billion on various investments and acquisitions, with another $1 billion flowing to insiders through loans and other payments—funds that may no longer hold their original value.Original link
