made in the FTX group's bankruptcy process, delivered by caretaker leadership, provides more details about allegations of commingling and misusing customer assets for the aims of the company founder Sam Bankman-Fried.
In a shot at Bankman-Fried’s public defense in the wake of FTX’s collapse that he did not knowingly misuse customer funds, the report goes on to note that"the FTX Group knew how to create a contractual agreement to separate and protect customer deposits when it suited the FTX Group to do so,” and singles out FTX Japan, one of the few solvent pieces of the failed crypto empire, as a unit of FTX that created actual safeguards for company assets.
“Attorney-1 responded by calling the attorney and asking him to meet in person the same day, a Saturday. When the attorney arrived to the meeting as requested, Attorney-1 fired him,” the report reads. “In moving to the Bahamas, where they incorporated FTX DM in July 2021, the FTX Senior Executives sought to minimize any substantive change to or scrutiny of their business,” says the report.