A 'Substantial Amount' of Money is Missing Says FTX Lawyer – Is it Missing or Has it Been Stolen?
A “substantial amount” of the failed crypto exchange FTX’s assets are either missing or have been stolen, said the exchange’s lawyer in court.
According to the Wall Street Journal, this statement was made by said James Bromley, counsel to FTX’s new management, during a bankruptcy hearing on Tuesday.
Per the report, the new management is on the hunt for all the salvageable assets, but is also looking for those responsible for the loss of customer funds.
Per Bromley, the former leadership exhibited an utter lack of professionalism in managing billions of dollars in users’ cryptoassets. He went on to describe the fall of FTX as:
“One of the most abrupt and difficult collapses in the history of corporate America and the history of corporate entities around the world.”
Bromley said that the new management would “cast a wide net” to secure what may be billions of dollars in funds that went through the company, which he described as the “personal fiefdom” of its founder, stating:
“What we have here is a worldwide, international organization, but which was run as a personal fiefdom of Sam Bankman-Fried.”
The counsel said earlier this month, at the first appearance in court after filing for bankruptcy, that,
“FTX was in the control of inexperienced and unsophisticated individuals, and some or all of them were compromised individuals.”
The report suggested that the new management is still assessing how much FTX actually lost under Bankman-Fried. The gap size between FTX’s obligations to its users and the available assets it could use to help pay them back is still unknown.
Bromley said the exchange’s individual and institutional customers number in the millions, while the 50 largest creditors alone are owed more than $3 billion, per the
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