Key Points:
- FTX bankruptcy attorneys are requesting authorization to subpoena former CEO Sam Bankman-Fried, his family, and key employees of the defunct cryptocurrency exchange.
- According to the filing, Bankman-parents, Fried’s Joseph Bankman and Barbara Fried, and brother, Gabriel Bankman-Fried, served as his advisors, saying the trio acted as his advisers.
According to Bloomberg, lawyers argued in a court statement that Sam Bankman-Fried’s parents and brother should be made to answer inquiries and submit financial records on their own wealth and any money they may have received from FTX, the insolvent company he created.
In an effort to find hidden assets that may be used to pay back creditors owed billions of dollars, FTX requested a judge for permission to examine Bankman-Fried’s family and a few of the business’s former senior executives under oath.
The court document demonstrates the aggressive strategy that FTX advisors are employing to recoup any funds that Bankman-Fried may have disbursed inexplicably. The company actively supported political campaigns and lobbied government authorities. Bankman-Fried has been accused of fraud by federal prosecutors for his part in the demise of the exchange, which declared bankruptcy in November.
According to the petition, Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, and brother, Gabriel Bankman-Fried, served as his advisors. The three are named in the file.
Along with Gary Wang and Nishad Singh, who co-founded FTX, attorneys are also pursuing Caroline Ellison, a former CEO of Alameda Research, and Constance Wang, a former chief operating officer of FTX Trading Ltd. and co-CEO of FTX Digital Markets Ltd. Lawyers for the FTX debtors and the official creditors’ committee wrote in a joint motion:
“Certain insiders are currently cooperating with the debtors to provide important information. But others are not, and thus authorization to issue subpoenas to those with the missing information is critical to the debtors’ and committee’s recovery efforts.”
Lawyers are looking for information and documents related to, among other things, the personal assets of FTX insiders as well as the assets and commercial activities of FTX. John Ray III, the new CEO of the company, has previously claimed that the company’s leaders failed to keep accurate financial records, which hindered his attempts to recoup assets during the bankruptcy process.
Before the company attorneys can issue subpoenas to Bankman-Fried’s family, forcing them to appear for questioning and to turn over records, US Bankruptcy Judge John Dorsey must authorize the request.
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Harold
Coincu News
