FTX released the first report surrounding its collapse in November 2022, which details the reasons behind its failure.
The report identifies the lags in management and governance, finance and accounting, digital asset management, information security, etc., which were necessary for safeguarding the firm's assets.
As per the report, FTX's total liabilities are $12 billion; out of which $1.4 billion in digital assets have been recovered, and another $1.7 billion have been identified.
The report is compiled after reviewing terabytes of electronic data and communications, more than one million documents, and interviews conducted with 19 former FTX Group employees, and more.
John J. Ray III, CEO and CRO of the FTX Debtors said that the report is being released in the spirit of transparency, which they promised since the beginning of the Chapter 11 process.
As per the report, the reasons for the failure of FTX included SBF’s final say in all major decisions, core personnel’s lack of risk management and operation experience, etc.
This report will highlight and talk about the events that led to FTX’s downfall and help creditors recover as much value as possible.