Debtors of failed crypto exchange FTX conduct an ongoing review and release the first report regarding pre-petition events and issues that preceded the Chapter 11 cases.
FTX Trading and its affiliated debtors have released the «expected-to-be» first report which identifies and discusses control failures by FTX Group’s previous management team, according to an announcement.
The report finds FTX Group failed to implement appropriate controls in areas that were critical for safeguarding cash and crypto assets. The group was also tightly controlled by a small group of individuals who falsely claimed to manage FTX Group responsibly.
Little Interest in an Appropriate Control
In fact, they showed little interest in instituting oversight or implementing an appropriate control framework
«We are continuing our efforts to review the events that factored into the fall of FTX and to identify and recover as much value as possible for creditors,» said John J. Ray III, FTX Debtors’ CEO and chief restructuring officer.
Terabytes of Electronic Data
The report's reviews include management and governance, finance and accounting, digital asset management as well as information security and cybersecurity. It is found based on the terabytes of electronic data and communications, more than one million documents and interviews with 19 former employees.
