Out of the total identified $181 million in the FTX U.S. possession, about $90 million worth of those assets has gone missing and investigation is currently ongoing on its location.
Missing Funds Amid Bankruptcy Investigation
In a shocking turn of events, FTX U.S has discovered $90 million missing from its accounts.
The missing funds were discovered during an investigation into the company’s finances.
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The United States Department of Justice instigated an investigation into the FTX exchange and its affiliates regarding its finance.
The agency also commenced investigating the $400 million hack that occurred on the exchange as well as getting the report of reserves from its subsidiaries.
In a report obtained from the FTX U.S. subsidiary, a total sum of $181 million was reported to be in the company’s reserve, however $90 million worth of those assets was nowhere to be found.
This information reaching the public caused the firm to address this issue assuring users and investors that this missing funds will be traced and be paid back to creditors.
Reactions From the Community
The news of the missing funds has raised concerns in the cryptocurrency community, with many customers expressing their frustration and disappointment with the firm.
Many have taken to social media to call out the exchange on the whereabouts of these funds.
FTX U.S. has assured its users and investors that it is doing everything in its power to trace these missing funds and will take steps to contain and manage their finances well in the future to prevent a similar case like this from occurring again.
The cryptocurrency market has been witnessing a significant surge in popularity and gaining a lot of traction in recent years, with many traditional investors turning to crypto.
However, incidents like this one have raised concerns about the safety and security of these investments.
The incident has also raised concerns about the overall security of cryptocurrency exchanges and their capacity to handle users funds in large capacity moving forward.
Many community members and analysts have called for stricter regulations to be put in place to ensure the protection and safety of customer funds.