Home » Chaotic collapse of FTX crypto empire triggers more than 1m creditors

Chaotic collapse of FTX crypto empire triggers more than 1m creditors

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The team of restructuring experts that dominated Sam Bankman-Fried’s failed cipher The U.S. empire is engaged with ‘dozens’ of regulators around the world who are scrambling to secure customer accounts, likely to exceed 1 million, according to bankruptcy court filings. We are starting to get involved with our creditors.

While details are still sparse, these documents are the first to reveal what’s going on inside FTX and its trading arm, Alameda Research, four days after restructuring lawyers took responsibility and led the company to bankruptcy court. You can get an official glimpse.

John J Ray III, who succeeded Bankman-Fried in the early hours of November 11, appointed five people, including former federal judges, to independent boards of FTX, Alameda and three other major entities. .

“Questions have been raised about Mr. Bankman-Fried’s leadership and the handling of FTX’s complex array of assets and businesses under his direction,” the crypto firm’s attorney wrote in the filing, adding that Bankman-Fried It added that Fried had agreed to leave the company. Early morning on November 11th.

The two companies entered bankruptcy court hours later after facing a “serious liquidity crisis,” according to the documents.

A team of external advisors, including attorneys and restructuring experts from Sullivan & Cromwell and Alvarez & Marshall, began responding to the November 11th hack by moving customer accounts into so-called cold wallets. did. I have written.

Collection of creditors

Mr. Wray, who oversaw the $23 billion (€22 billion) liquidation of energy trading company Enron, appointed former U.S. District Court Judge Joseph J. Farnan as lead independent director to oversee FTX Trading. Mr. Ray has a reputation for facilitating the collection of his creditors.

Given the number of creditors in the case, FTX’s attorneys have asked U.S. Bankruptcy Court Judge John Dorsey for flexibility in bankruptcy rules that normally require correspondence by address.

Instead, they are asking for permission to use the customer’s email address. The attorney said he plans to file a list of her 50 biggest creditors on FTX by Nov. 18.

Over the past three days, FTX representatives have been in contact with authorities, including the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, according to filings.

Bankman-Fried, meanwhile, is seeking commitments to raise fresh cash from investors. wall street journal This was reported by a person familiar with the matter.

FTX’s former chief executive and a handful of remaining employees continued to call over the weekend seeking commitments from investors, the report said.

wall street journal We were unable to determine if the investor committed.

The company has been scrambling for funds since earlier this month after bigger rival Binance pulled out of a deal to acquire FTX.

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