FTX's Lawyer Says Exchange Lost 'Substantial Amount' of Crypto
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Nov. 22, 2022

Bankrupt cryptocurrency exchange FTX has lost a "substantial amount" of assets due to a theft or a cyberattack, James Bromley, a partner at the law firm Sullivan & Cromwell who is representing FTX, said at a bankruptcy hearing, The New York Times reports.

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Bromley said that the failed crypto exchange was in the control of "inexperienced and unsophisticated individuals," adding that some or all of them were "compromised individuals." He concluded that Bankman-Fried's lack of adequate management of FTX has left lawyers with almost no information about the exchange's finances.

In the meantime, reports say that FTX former CEO, his parents and senior managers spent nearly $121 million to buy 19 properties in the Bahamas. The group reportedly bought luxury beachfront homes, including seven condominiums in a resort community called Albany, costing over $70 million.

FTX Owes $3.1B to Top 50 Creditors

In early November, Binance publicly announced plans to liquidate FTT from its reserves due to "recent revelations that have came to light." Although Binance's CEO, Changpeng Zhao, declined to explain what was the trigger behind the move, he had pointed out that the exchange "won't support people who lobby against other industry players behind their backs," referring to FTX.

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