FTX Discloses ‘Substantial Shortfall’ of Customer Assets

Bankrupt cryptocurrency exchange FTX hasn’t found enough cash and assets to make customers whole, suggesting a long road ahead as it works to get money back to the platform’s users.FTX said Tuesday that a probe of its balance sheet has shown its holdings of customer funds are lower than the exchange’s internal accounts had indicated, a sign that customers’ cryptocurrency was moved out of custodial accounts without their knowledge. FTX also said it found that a small group of individuals at the company had the ability to remove digital assets from the exchange without any recordkeeping. “Based on current estimates of the...