In full bankruptcy, a large amount of FTX assets were stolen

A “substantial amount” of FTX Group assets “were stolen or are missing”an attorney representing the company told a bankruptcy court Tuesday.

“Unfortunately, FTX debtors were not particularly well managedand that’s an understatement,” said James Bromley, co-director of construction at the law firm Sullivan & Cromwell, a judge in Wilmington, Delaware.

The fall of Sam Bankman-Fried’s crypto empire happened very quickly and was “pretty shocking,” Bromley said. he qualified “unprecedented” Chapter 11 bankruptcy case.

“Probably, we have witnessed one of the most abrupt and difficult corporate collapses in the history of corporate America“, he claimed.

Once Bankman-Fried took over the business, everyone realized for the first time that “the emperor had no clothes”Bromley told the court.

Asset protection and recovery is one of the main objectives now at FTX, in addition to the implementation of controls and “transparency and investigation,” Bromley said. Maximizing value is also key to the process, whether that means selling or reorganizing businesses. FTX will probably ask the judge for permission to sell some assets “quite quickly”added.

The FTX empire declares bankruptcy and Sam Bankman-Fried, former king of crypto, loses his fortune

Bromley explains that the types of controls applied in the FTX system now include accounting, auditing, data management and human resources traditional market standard. The FTX team is also coordinating with regulators in the US and around the world..