FTX has recovered $7 billion in liquid assets so far, those overseeing the exchange’s bankruptcy proceedings disclosed in the second interim report released on Monday.

The FTX debtors estimate that the exchange owed customers $8.7 billion at the time that it filed for Chapter 11 bankruptcy, with over $6.4 billion made up of fiat currency and stablecoins that had been misappropriated.

“Despite the ongoing challenges created by the commingling of customer deposits and corporate assets, and other mismanagement of the FTX Group, the Debtors continue to make substantial progress in their ongoing efforts to identify, secure and recover assets for the estate,” they said. 

To further emphasize the extent of commingling, the debtors illustrated the convoluted nature of money flows of FTX customer funds to the exchange’s affiliated deposit accounts.

The diagram depicts transfers made with customer money sent to the primary deposit accounts – Alameda Research, North Dimension Inc, and FTX Digital Markets – to other corporate accounts from as early as April 2019. 

The mixed customer and corporate funds were then used to fund corporate expenditures that benefitted former CEO Sam Bankman-Fried and other senior employees. These expenses included political donations, venture investments and luxury real estate in the Bahamas.

The report lists 29 residential properties in the Bahamas purchased between 2021 and 2022 with a price range of between $880,000 and $30,000,000. 

According to the debtors, the misuse of customer funds by FTX executives was no accident.

“Bankman Fried, with the assistance of a senior FTX Group attorney (“Attorney-1”) and others, lied to banks and auditors, executed false documents, and moved the FTX Group from jurisdiction to jurisdiction, taking flight from the United States to Hong Kong to the Bahamas, in a continual effort to enable and avoid detection of their wrongdoing,” stated the report.