FTX Debtors Release First Report: Alameda Has Received Unlimited Withdrawal Access Since 2019

FTX Debtors have released their first report, which includes 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 reached an agreement with the Department of Justice under a cooperation agreement in which SBF was deemed to have the final say in all major decisions; the core personnel were new graduates with no risk management or new graduates with no operational experience; 56 entities within the FTX Group did not prepare financial statements; Singh changed the code base on July 31, 2019 to allow Alameda to withdraw an unlimited amount of crypto assets from FTX; and modified it a week later to exempt Alameda from automatic liquidation; almost all of the FTX Group's crypto assets were held in hot wallets (SBF had falsely claimed to use cold wallets). Debtors now have access to over $1.4 billion in digital assets and have confirmed another $1.7 billion in digital assets in the recovery process (FTX's total liabilities are approximately $12 billion).