So could FTX, at the time of its bankruptcy, let everybody get the assets they had title to? Because that was the issue wasn't it? They said they were holding

So could FTX, at the time of its bankruptcy, let everybody get the assets they had title to? Because that was the issue wasn't it? They said they were holding stuff for customers, but didn't. The way I understood it the fraudsters only held a fraction of the Bitcoin they were supposed to hold, for example. How would the scenario work where bankruptcy wasn't declared? They would have refused to provide assets to customers, the customers would have sued, and the fraud would have come out anyway. Delaying discovery when you're underwater on your obligations means you're just piling on more crimes. Which is probably what lawyers explained to the chief fraudster. It gets harder and harder to claim an honest mistake.