FTX has recovered $7B in assets so far, has almost $2B to go to cover misappropriations

The former FTX leadership “did not commingle and misuse customer deposits by accident,” the report alleged, and leadership hid its actions “with the assistance of a senior FTX Group attorney” and others. As a result:

“Notwithstanding extensive work by experts in forensic accounting, asset tracing and recovery, and blockchain analytics, among other areas, it is extremely challenging to trace substantial assets of the Debtors to any particular source of funding, or to differentiate between the FTX Group’s operating funds and deposits made by its customers.”

The extent of the chaos was driven home by a diagram of flows of FTX customer money out of primary deposit accounts “as identified to date.” Those flows were made possible by misrepresenting their purpose to banks and many other false representations, the report said.The misrepresentation even extended to statements former CEO Sam Bankman-Fried made to the United States Congress.

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