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FTX Bankruptcy Hearing: 'Substantial' Assets Stolen

  • FTX's attorney claimed a large portion of the company's assets were stolen or lost in bankruptcy court.

  • FTX's bankruptcy lawyer stated a large amount of the company's assets were stolen or lost. Attorney Bromley said FTX debtors weren't well-managed.

23 Nov 2022 By : COIN GABBAR
FTX Bankruptcy Heari

During the bankruptcy court, the FTX counsel claimed that a sizable portion of the company's assets were either stolen or lost.

During the bankruptcy court, the lawyer for FTX claimed that a sizable portion of the company's assets were either stolen or missing. Attorney Bromley added that the FTX debtors were regrettably not administered especially properly. The lawyer called the FTX case "unprecedented" in his opening remarks. He added that Sam Bankman-Fried and other top FTX executives kept questionable documents.

In November, there was a bank run, and Sam Bankman-Fried, who maintained faulty documents at FTX, is among a very tiny handful of people that control the company. A large number of assets have either gone missing or have been stolen.

Sudden Collapse

The primary objective of FTX going forward is to maximise assets in order to be able to pay investors' dues. Maximization, according to Bromley, is a key goal whether enterprises are sold or reorganised. The attorney noted the FTX collapse happened extremely rapidly and was quite surprising when discussing it during the court. The collapse was also referred to as "one of the most rapid and challenging corporate failures in the history of corporate America" by the author.

There are still some FTX employees.

Additionally, according to CoinGabbar, the crypto exchange still employs about 260 people at the moment. The FTX Token (FTT) is currently trading at incredibly low prices when compared to its October range of $22.50. According to price monitoring site CoinGabbar, the price of FTT is currently $1.31, up 7.10% over the previous day.

The FTX Group stated on November 12 that it would initiate voluntary chapter 11 bankruptcy proceedings. According to FTX, the choice was made with the intention of methodically optimising its assets for the advantage of investors. Sam Bankman-resignation Fried's from the position of CEO coincided with the announcement. John Ray has been chosen to serve as the new CEO of FTX.