On Tuesday, November 22, a hearing was held before the bankruptcy court to exchange on the FTX case. According to company attorneys Sam Bankman-Fried (SBF), the company’s founder, ran his company like a personal realm ».
Lawyers point finger at mismanagement of Sam Bankman-Fried
A significant amount of company assets were stolen. The lawyers have promised to cast a wide net for ” securing the billions of dollars in funds that have passed through Sam Bankman-Fried’s company “. According to wall street journal, the November 22 hearing marked an inflection point in the FTX case. At the same time, the new new leaders of the company are doing everything possible to track down assets they can salvage and trying to determine who might be responsible for losing customers’ money.
According to FTX New Management Counsel James Bromley, “ the company was under the control of inexperienced and unsophisticated individuals, and some, if not all, of them were compromised individuals “. The lawyers wanted to support on the lack of professionalism of the old team management and especially Sam Bankman-Fried. They state that “ what we have here is a global, international organization, but one that was run like the personal fiefdom of Sam Bankman-Fried “.
According to them, the downfall of FTX is “ one of the most violent collapses in US history “. The new management of FTX is only beginning to take stock of the sums that have disappeared. A team of investigators has been set up to carry out a global hunt for dollars that left FTX before its bankruptcy. It is made up of former employees of the SEC and the Department of Justice and specialists in cybersecurity.
Their goal is to track down assets belonging to FTX, which may have been taken without permission. The magnitude of the gap between FTX’s obligations to its customers and the available assets it could use to pay them is still not known. According to initial court documents, FTX owes more than $3 billion to its 50 largest creditors. Since its fall, the company has been the victim of continuous cyberattacks.
The new management has implemented new controls to try to limit their impact in order to protect the company against future hacks. Additionally, FTX remains in constant communication with the Ministry of Justice the United States. In parallel, the cybercrime unit of the district attorney’s office in Manhattan has opened an investigation.