FTX During Bankruptcy Hearing: Substantial Assets Stolen/Missing

FTX During Bankruptcy Hearing: Substantial Assets Stolen/Missing

FTX Bankruptcy Hearing News: The attorney representing FTX said during the bankruptcy hearing that a substantial amount of assets were stolen or missing. Attorney Bromley also said that unfortunately the FTX debtors were not particularly well run. In his opening remarks, the attorney described the FTX case as ‘unprecedented’. He further said top FTX executives including Sam Bankman-Fried kept unreliable records.

“There was a run on the bank in November, and FTX is controlled by a very small group of people including Sam Bankman-Fried, who kept unreliable records. A substantial amount of assets have either been stolen or are missing.”

Abrupt Collapse

Going forward, the main aim of FTX is to maximize assets to be able to return dues to investors. Bromley said maximization is a core objective, whether it means selling businesses or reorganizing businesses. Speaking about the FTX collapse during the hearing, the attorney said it happened very quickly and was quite shocking. He also described the meltdown as “one of the most abrupt and difficult corporate collapses in the history of corporate America.”

Also Read: FTX Drainer Swapping Ethereum To Bitcoin; Will It Impact ETH Price?

A Fraction Of FTX Employees Remain

Bromley also said that currently around 260 employees remain at the crypto exchange. In this context, the FTX Token (FTT) is trading at extremely low levels compared with October range of $22.50. As of writing, FTT price stands at $1.31, up 2.10% in the last 24 hours, according to price tracking platform CoinMarketCap.

On November 12, the FTX Group announced its decision to go for voluntary chapter 11 bankruptcy proceedings. The decision, FTX said, was aimed at systematically maximizing its assets for the benefit of investors. Along with the announcement came the stepping down of Sam Bankman-Fried from the role of CEO. John Ray has been appointed as the new FTX chief executive officer.

Also Read: Binance Refuses Any Investment to Save Crypto Lender Genesis, Bankruptcy Ahead?

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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