FTX debtors release interim report on "FTX and related business control failure"

ChainCatcher news, the FTX debtors have released the first interim report regarding the control failures of FTX and related businesses. This report identifies and discusses the control failures of the former management team of the FTX Group in key areas, including management and governance, financial and accounting, digital asset management, information security, and cybersecurity. It reiterates that FTX lacked record-keeping and controls, making it impossible to prove the location or manner of fiat and digital assets, as well as the extensive commingling of assets. It states that "FTX executives suppressed dissent, commingled and misused company and customer funds, lied to third parties about their business, and joked internally about losing track of millions of dollars in assets," forcing the debtors to piece together financial records based on what they found in QuickBooks and Slack records.

Additionally, the U.S. team stated that laptops belonging to SBF and other senior insiders are currently in the hands of the Bahamian joint provisional liquidators, who "have been less than cooperative." (source link)