NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: ‘Crypto Week’ Takes A Hit: US House Fails To Advance Key Acts
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: ‘Crypto Week’ Takes A Hit: US House Fails To Advance Key Acts

Major Reveals From The FTX Bankruptcy Filing, What’s The Takeaway?

Denis
Denis
2 years ago
3 mins read
Major Reveals From The FTX Bankruptcy Filing, What's The Takeaway?

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

With the FTX crypto exchange’s collapse, many events erupted in the crypto space. As a result, more of FTX’s investors and partners record massive losses with no potential recovery system.

FTX filed for bankruptcy last week, but shocking revelations are now creeping out following its bankruptcy filing. A deeper examination of the crypto exchange disclosed that FTX operations have more than the eye could see with many coatings.

Related Reading

MATIC

MATIC Backpedals Into Bearish Track Despite Its Social Dominance

2 years ago

FTX Inappropriate Governance Structures

An examination of the FTX’s 30-page filing report indicates that the crypto exchange has inappropriate governance structures. A majority of the entities under the FTX Group, especially those in the Bahamas and Antigua, lack the right organizational lines in operation. For example, most of the branches do not have board members. Hence, they never held any board meetings.

Also, the company has no comprehensive and proper record of its staff. There were no apparent records of the working period and responsibility for its contractors and employees. All attempts to compile a list of all the staff were futile since some couldn’t be contacted or located.

No Proper Record for Customers’ Deposits

Further discovery from FTX’s filing is that firm has no records of its users’ deposited tokens on its balance sheet. Hence, upon its insolvency, there’s no presentation of a balance for the deposited assets on the platform.

Additionally, FTX Group firms use an unsecured group email account to store private keys to customers’ assets. The company has been using software to mask the inappropriate use of customers’ funds.

Also, the firm’s digital assets have been under the control of the founders, Sam Bankman-Fried (SBF) and Gary Wang.

Approves Expenses Using Online Chats

Further examination indicated that FTX has no proper disbursement control system. Instead, the firm’s staff uses online chats to submit expense requests and the managers and supervisors approve such using personalized emojis.

Lots of the organizational decisions were conveyed through chats. Also, SBF, co-founder and former CEO of the company, encouraged the staff to communicate with apps where messages were auto-deleted after a while. So, the firm has no permanent records of all decisions made.

Also, the crypto exchange has no cash management system. As a result, it is impossible to ascertain the amount of cash at hand at any point in time. FTX has no accurate record of its bank accounts and signatories without a centralised cash control system. As a result, the firm felt less concerned over the creditworthiness of its banking partners.

Major Reveals From The FTX Bankruptcy Filing, What's The Takeaway?
Cryptocurrency market to recover above $2 trillion | Source: Crypto Total Market Cap on TradingView.com

Related Reading

Litecoin

Litecoin (LTC) Up 8% In Last 24 Hours, The Biggest Gainer Out Of Top 20 Cryptos

2 years ago

Some top employees have been taking loans from the sister Alameda Research. A report indicated that SBF, his co-CEO Ryan Salame and FTX’s executive Nishad Singh got $1 billion, $55 million, and $543 million, respectively.

Part of the shocking discovery on FTX is that the executives have been misappropriating customers’ funds. They acquired homes and other personal properties for top executives without proper documentation. They made the purchases of such properties under the employees’ names.

Featured image from Pixabay, chart from TradingView.com
Tweet123Share196ShareSend
Denis
Denis

Denis

Denis is a passionate writer and editor and he's been writing in finance industry for almost 6 years.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Cardano

A Breakout To Remember: Cardano Price Mirrors Market Conditions That Led To $3.10 ATH

Crypto analyst Scrambler has drawn attention to a bullish pattern that is forming for the Cardano price, which could lead...

Scott Matherson 2 hours ago
Bitcoin Bears Strike Back After ATH: Long/Short Ratio Flips Negative

Bitcoin Bears Strike Back After ATH: Long/Short Ratio Flips Negative

Bitcoin is undergoing a slight retrace after hitting a new all-time high of $123,000 on Monday. While the broader trend...

Sebastian Villafuerte 3 hours ago

Price Isn’t the Only Thing Rising – FUNToken’s Roadmap Execution Is Gaining Speed Too

When most people look at FUNToken’s chart, the first thing they see is a remarkable surge in value. From trading...

News BTC 4 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

SharpLink Gaming Buys $73M in Ethereum – Smart Money Loads the Dip

SharpLink Gaming Buys $73M in Ethereum – Smart Money Loads the Dip

Sebastian Villafuerte 27 minutes ago
Crypto

‘Crypto Week’ Takes A Hit: US House Fails To Advance Key Acts

Ronaldo Marquez 29 minutes ago
Ethereum

Ethereum Smashes Resistance — Is The Next Leg Up Already Here?

Sandra White 1 hour ago

Premium Sponsors

Press Releases

  • ミームコインの価格急騰が続く中、注目の仮想通貨プレセールが50万ドルを突破し、次の100倍コインになる可能性がある。

    ...

    5 hours ago
  • 仮想通貨おすすめ|ビットコイン強気派の一休み中に買うべき銘柄

    ...

    5 hours ago
  • 2025年注目の新しい仮想通貨|Solana発 次世代ミームコインが投資家の期待を集める

    2025年注目の新しい仮想通貨|Solana発...

    6 hours ago
  • 2025年7月第2週にクジラが購入した注目のアルトコイン

    ...

    6 hours ago
  • 仮想通貨おすすめ|1ドル以下の3銘柄が2027年までに200ドルの投資を200万円に変える可能性

    ...

    6 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.