The wreckage of FTX is going to get only messier. On Tuesday, the lawyers representing the defunct crypto exchange made their first appearance in Delaware bankruptcy court to lay out the bleak situation left behind by Sam Bankman-Fried, the former billionaire CEO of what is now ground zero for the largest crypto fraud in history. “A substantial amount of assets have either been stolen or are missing,” said James Bromley, the lawyer at Sullivan & Cromwell who’s representing FTX. On November 11, the day Bankman-Fried formally filed for Chapter 11, there was a breach that cost the firm roughly $600 million, and attempts to hack the exchange have continued, lawyers said. There are more than 1 million creditors around the world, and the people trying to figure out what was going on inside the company have little more than an email address associated with many of those accounts. Bromley reiterated a point made by the new CEO, John J. Ray III — the guy who restructured Enron after it collapsed — that the company was run by “compromised individuals.” …

Likely to come is a painstaking autopsy into Bankman-Fried’s management of the company in an attempt to reckon where all this money went. Reuters reported Tuesday that $300 million of the company’s funds went into Bahamian real estate. The roughly $600 million hacked from FTX is already being swapped in and out of different cryptocurrencies, according to Wired. Bromley said there would likely be an investigation into the divestment by Binance, FTX’s chief rival, whose CEO’s public vote of no-confidence was one of the most significant actions leading to the company’s demise.