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Lawyers only find a fraction of the company's assets

Lawyers only find a fraction of the company’s assets

FTX

Insolvency professionals complain about poor internal controls and records at the cryptocurrency exchange.


(Photo: Reuters)

New York Bankruptcy professionals working to unravel the collapse of Sam Bankman-Fried’s FTX conglomerate said they are having trouble identifying the company’s declared assets in the form of cash and cryptocurrency. Experts also complain about the lack of internal control mechanisms and incomplete records at the collapsed cryptocurrency exchange operator.

“Only a fraction of FTX Group’s digital assets have been located and secured,” John J. Ray, the group’s new CEO, said in an affidavit filed Thursday in bankruptcy court.

To date, only about $740 million worth of cryptocurrency has been secured in so-called cold wallets, i.e. cryptocurrency stores. It is also unclear how much cash FTX Group had when it filed for bankruptcy. So far, experts have found only about $560 million attributable to various FTX companies.

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