FTX Bankruptcy Hearing Details Due Diligence by 'Inexperienced and Unsuspecting Individuals'
Hearings that will determine the fate of FTX, once one of the largest crypto exchanges in the world, began in US Bankruptcy Court for the District of Delaware on Tuesday.
"We are here for an unprecedented matter and I do not say these words lightly," said James Bromley, partner at Sullivan & Cromwell and co-head of the firm's global restructuring practice, during of the hearing. “This is a day one hearing well over a week after they were filed; that in itself is unusual. But what we have here [ … ] is a different type of animal.”
Prior to the bankruptcy filing, FTX was "under the control of a small group of inexperienced and unsuspecting individuals," Bromley said. "Unfortunately, the evidence seems to indicate that some or all of them were compromised."
The crypto exchange fell out of favor earlier this month and filed for Chapter 11 bankruptcy on November 11. At the time, FTX CEO and founder Sam Bankman-Fried resigned and Enron turnaround veteran John J. Ray III was appointed. as the new CEO. Ray attended the hearing on Tuesday, along with over 1,100 people who joined the hearing via a Zoom meeting link and YouTube streaming.
Hearings that will determine the fate of FTX, once one of the largest crypto exchanges in the world, began in US Bankruptcy Court for the District of Delaware on Tuesday.
"We are here for an unprecedented matter and I do not say these words lightly," said James Bromley, partner at Sullivan & Cromwell and co-head of the firm's global restructuring practice, during of the hearing. “This is a day one hearing well over a week after they were filed; that in itself is unusual. But what we have here [ … ] is a different type of animal.”
Prior to the bankruptcy filing, FTX was "under the control of a small group of inexperienced and unsuspecting individuals," Bromley said. "Unfortunately, the evidence seems to indicate that some or all of them were compromised."
The crypto exchange fell out of favor earlier this month and filed for Chapter 11 bankruptcy on November 11. At the time, FTX CEO and founder Sam Bankman-Fried resigned and Enron turnaround veteran John J. Ray III was appointed. as the new CEO. Ray attended the hearing on Tuesday, along with over 1,100 people who joined the hearing via a Zoom meeting link and YouTube streaming.
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