The debtors reiterate the stunning lack of recordkeeping and controls at FTX: "Normally, in a bankruptcy involving a business of the size and complexity of the FTX Group, particularly a business that handles customer and investor funds, there are readily identifiable records, data sources, and processes that can be used to identify and safeguard assets of the estate. Not so with the FTX Group."

"Upon assuming control, the Debtors found a pervasive lack of records and other evidence at the FTX Group of where or how fiat currency and digital assets could be found or accessed, and extensive commingling of assets."

FTX executives "stifled dissent, commingled and misused corporate and customer funds, lied to third parties about their business, [and] joked internally about their tendency to lose track of millions of dollars in assets"

Debtors are having to cobble together financial records from what they're able to find in QuickBooks and Slack records 💀

It sounds like the debtors are limited somewhat by the fact that laptops belonging to SBF and other high-level insiders are currently in the hands of the Bahamian Joint Provisional Liquidators, who've been less than cooperative (according to the US team, at least).

Nishad Singh, Gary Wang, and Caroline Ellison have all pled guilty and are cooperating with the DOJ, making it infeasible for the debtors to interview them for bankruptcy purposes until after the criminal trial is over. They have interviewed others, though.

Some new context on the sudden resignation of Brett Harrison in September 2022: he "resigned following a protracted disagreement", after which his bonus was drastically reduced.

In a separate instance, a lawyer who was hired only three months prior, who learned about the North Dimension bank accounts, was "summarily terminated after expressing concerns about Alameda’s lack of corporate controls, capable leadership, and risk management."

"At the time of the bankruptcy filing, the FTX Group did not even have current and complete lists of who its employees were."

"As a general matter, policies and procedures relating to accounting, financial reporting, treasury management, and risk management did not exist, were incomplete, or were highly generic and not appropriate for a firm handling substantial financial assets."