A new report on the bankruptcy of crypto exchange FTX and affiliated companies has revealed major security concerns and chaos in business practices. The report alleges that hot wallets holding tens of millions of dollars-worth of assets were not securely stored, keys to wallets were not well-protected, and private keys for different wallets were stored without appropriate backup procedures.

In addition, the report highlights poor record-keeping, lack of delegation, and questionable management practices, including the transfer of tens of millions of dollars to Sam Bankman-Fried's personal bank account listed as "investments-cryptocurrency."

FTX and Alameda's digital assets were highly vulnerable to theft or hacking, and $432 million worth of digital assets were stolen from FTX by a malicious actor the night the majority of the crypto empire was placed into bankruptcy by Bankman-Fried.

The report notes that $1.4 billion of digital assets have been recovered and secured in cold wallet storage, but an additional $1.7 billion in digital assets still need to be recovered, with the assistance of blockchain analysis firms TRM and Chainalysis.