FTX Lawyer Claims Loss of ‘Significant Amount’ of Crypto Exchange Assets

Lawyer James Bromley, hired by the new management of the FTX cryptocurrency exchange, said that a “significant amount” of the platform’s assets was missing and may have been stolen, reports The Wall Street Journal. The collapse of the company, according to him, was caused by a crisis of management and the free treatment of its employees with client deposits.

Mr. Bromley criticized what was happening at FTX – it was a company that operated globally, but was managed as the personal fiefdom of its former head, Sam Bankman-Fried (Sam Bankman-Fried). The platform was controlled by inexperienced individuals, some of whom, or even all, admitted by the new lawyer, acted in bad faith.

Modern legislation regulating the activities of cryptocurrency financial organizations is extremely imperfect – their clients are deprived of state protection: there is no deposit insurance system that helps people return their investments in the event of the collapse of banks and brokerage houses. Now the bankruptcy court is trying to deal with the consequences of the collapse of FTX.

The new management of FTX said that the balance sheet, showing the current assets and the company’s obligations to customers, will be ready only by January. Some subsidiaries turned out to be solvent – in total, funds for $1.4 billion were discovered. The authorities of the Bahamas seized the digital assets of FTX Digital Markets located in their jurisdiction, which its owners considered illegal. At the same time, the access keys to these assets remain at the disposal of the FTX management.

The total number of creditors of the crypto-exchange can reach a million, and the total amount of debt continues to be calculated. According to preliminary data, only the 50 largest clients of the platform owe about $3.1 billion. Lawyers also insist on maintaining the salaries of the remaining employees of the company and continuing to settle accounts with suppliers whose goods and services are necessary for the continuation of FTX.

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