FTX Debtors' First Report: Alameda Had Unlimited Withdrawals Permission Since 2019

FTX debtors released their first report, which included a review of over one million documents and interviews with 19 former FTX Group employees, focusing on the reasons for FTX's failure, including: Singh, Wang and Ellison had reached an agreement with the DOJ based on a cooperation plea, and SBF was considered to have the final say in all important decisions; the core individuals were recent college graduates with no experience in risk management and operations;

56 entities within the FTX Group did not prepare financial statements; Singh changed the code base on 31 July 2019 to allow Alameda to withdraw unlimited amounts of crypto assets from FTX; and modified it a week later to exempt Alameda from auto-liquidation; the FTX Group kept almost all crypto assets in hot wallets (SBF had lied about using cold wallets)

Debtors have now secured over $1.4 billion in digital assets and another $1.7 billion in digital assets have been identified and are in the recovery process (FTX's total liabilities are approximately $12 billion)

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