FTX's new CEO reveals: FTX tampered and misused data, Alameda will not be liquidated in FTX

FTX's new CEO, John J. Ray III, revealed in a series of documents submitted to the Delaware court that Alameda is actually exempt from FTX's automatic liquidation protocol, as disclosed in the document regarding FTX's digital asset custody situation.

Assets Lack Proper Cybersecurity Controls and Records

John J. Ray III stated that FTX Group lacks proper data records or cybersecurity controls for digital assets. SBF and CTO Gary Wang oversee the digital assets within FTX Group, except for subsidiaries like LegerX regulated by the CFTC, which are not part of the bankruptcy filing.

Ridiculous Management: Data Tampering

John J. Ray III mentioned that FTX uses insecure group email accounts as root users, giving access to confidential private keys and critical sensitive data of FTX Group companies globally. Moreover, they fail to confirm positions on the chain daily and use software to cover up the misuse of client funds.

Alarming: Alameda Will Not Be Liquidated

John J. Ray III also revealed that Alameda, to some extent, is exempt from FTX's automatic liquidation protocol.