Lawyers find only a fraction of the company’s assets

FTX

Insolvency specialists complain about the poor quality of internal controls and records at crypto exchanges.

(Photo: Reuters)

New York Bankruptcy specialists working to unravel the collapse of Sam Bankman-Fried’s FTX Group say they are having trouble locating the company’s cash and cryptocurrency assets. Experts also complain about the lack of internal control mechanisms and incomplete records at the collapsed crypto 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.

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

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