Bankruptcy lawyers say FTX was operated by ‘inexperienced and unsophisticated individuals’ – Bitcoin News

Bankruptcy lawyers say FTX was operated by ‘inexperienced and unsophisticated individuals’ – Bitcoin News

On Tuesday, attorneys representing FTX told the court that “a substantial amount of assets were stolen or missing” and further pointed out in bankruptcy court that FTX executives left attorneys James Bromley and Sullivan Cromwell with information. limited. Bromley further likened the crypto empire of former FTX CEO Sam Bankman-Fried (SBF) to his “personal fiefdom” and in the end, the lawyer said, “the Emperor had no clothing”.

Bankruptcy Lawyers Outline FTX’s Financial Troubles, Lawyer Says Case One of ‘Toughest Collapses in US Corporate History’

Delaware bankruptcy court heard from FTX attorneys James Bromley and Sullivan Cromwell on Tuesday, and it appears FTX’s financial records don’t look good. According to court documents, FTX has a cash balance of about $1.2 billion and this weekend a list of FTX’s top 50 creditors shows the entities owe about $3.1 billion.

However, the list of creditors, at least for the moment, remains confidential and the names are redacted. According to a New York Times (NYT) report, about 500 people tuned into the courthouse Zoom show on Tuesday. During the hearing, Bromley told the court that a “substantial amount of assets were stolen or missing” from the FTX platform.

The lawyer noted that lawyers include “a lot of people who are looking to get their money back immediately”, and Bromley insists the team are “working to be able to do that”. Lawyers had plenty of descriptions for the executives of FTX and Alameda Research, and Bromley called SBF’s empire a “personal fiefdom” that ended up showing that “the emperor had no clothes.”

Restructuring executives and lawyers are looking to “clean up the mess,” Bromley noted. FTX executives were also referred to as “inexperienced” and “unsophisticated individuals”. Bromley’s statements echoed the comment written by new FTX CEO John Ray, who said FTX’s bankruptcy was worse than Enron’s.

Bromley also told the court that FTX suffered “cyberattacks” referring to the hacking of FTX wallets on the day the company filed for bankruptcy protection. Bromley further mentioned that FTX’s headquarters are moving around a lot in areas like Berkeley, California, Hong Kong, Bahamas, and Miami.

However, despite the constant moves, FTX was “effectively under Mr. Bankman’s control,” Bromley detailed. FTX attorneys also clarified that the Bahamas-based joint provisional liquidators have agreed to transfer the case to the District of Delaware. Overall, Bromley said FTX’s bankruptcy case represented “one of the sharpest and most difficult collapses in American corporate history.”

Keywords in this story

alameda, Alameda Research, stolen or missing assets, attorney, bahamas, bankruptcy, bankruptcy case, bankruptcy creditors, Berkeley, california, collapse, US business, court records, filings, FTX bankruptcy case, FTX collapse, Hong Kong, James Bromley, John Ray, lawyer, miami, new FTX CEO, Sam Bankman-Fried, sbf, Sullivan Cromwell

What do you think of FTX’s bankruptcy case and the lawyer’s statements? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news manager for News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 6,000 articles for News about disruptive protocols emerging today.

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