cryptocurrencyAfter the exchange FTX filed the largest bankruptcy case in the history of the currency circle, it attended the first hearing on Tuesday (22nd). The lawyer representing FTX stated that all operations of FTX are like the “private territory” of former CEO Sam Bankman-Fried (SBF). Large amounts of assets are either stolen or disappear without a trace. US Senator Warren (Elizabeth Warren) said that the FTX incident is a wake-up call for Congress to repair the broken network of regulations.
The hearing was held in Wilmington Bankruptcy Court in Delaware on Tuesday (22nd). The live broadcast on YouTube and Zoom attracted regarding 1,500 people to watch.
After FTX declared bankruptcy, it has been led by new CEO John Ray. The new management appeared in court on Tuesday (22nd), and its legal counsel James Bromley detailed how FTX took the next step in SBF.
Bromley described the collapse of FTX as possibly one of the most sudden and difficult failures in the history of American companies, and even global companies.
A lawyer representing FTX now hopes to sell off its still-sounding business, but since filing for bankruptcy, it has been hit by cyberattacks that have wiped out “substantial” assets. FTX continues to maintain close communication with the U.S. Department of Justice and the Cybercrime Team of the U.S. Attorney’s Office in New York.
FTX said on Saturday that it was conducting a strategic review of global assets and was preparing to sell or reorganize some businesses.
Bromley also described that although FTX is a multinational company, it operates like a “private territory” of SBF. The company once spent 300 million US dollars to buy houses and vacation cabins for high-level executives.
Archyde.com earlier reported that FTX had spent regarding $120 million in the Bahamas over the past two years, buying at least 19 properties for his parents and company executives.
Wray has accused SBF of cooperating with the Bahamas to “sabotage” the U.S. bankruptcy and move assets overseas. The well-known lawyer who once worked on Anlong’s reorganization case lamented that in his 40-year career, he has never seen such failed corporate governance and financial information without credibility.
cryptocurrencyCustomers of exchanges lack safety net protections such as deposit insurance, and much of the rectification work of FTX or some recent currency circle bankruptcy incidents falls on bankruptcy courts, and these courts are still trying to clarify and answercryptocurrencyVarious problems of affected households.
Judge John Dorsey allowed several of FTX’s proposals to help the company with its bankruptcy, including keeping the names of clients whose funds were frozen confidential until its next hearing next month.
FTX recently announced preliminary information that it owes regarding $3.1 billion to the 50 largest creditors, but refused to disclose the names of the creditors on the grounds that this move would destabilize the currency circle, expose customers to the threat of hacker attacks, and may become poached by competitors The goal.
In addition, the lawyer stated that FTX has received letters from the Senate and the House of Representatives and needs to attend a congressional hearing in December.
Warren votes for stronger regulation
The FTX bankruptcy has drawn attention from both Republicans and Democrats. Warren, a Democrat, wrote to the Wall Street Journal (WSJ). She described the FTX incident as a wake-up call. “The United States should strengthen the enforcement of existing laws before the next currency disaster brings down the economy.”
Warren said in the submission that the US Securities and Exchange Commission (SEC) shouldcryptocurrencyThe attitude is tougher and calls on Congress to increase funding for the SEC, the Department of Justice and the Department of the Treasury.
