cryptocurrencyAfter the FTX exchange filed the largest bankruptcy case in the history of the currency circle, it attended the first hearing on Tuesday 22. The lawyer representing FTX said that all of FTX’s operations are like the “private territory” of the ‘former CEO Sam Bankman -Fried (SBF): Large quantities of assets are stolen or disappear without a trace. US Senator Warren (Elizabeth Warren) said the FTX incident is a wake-up call for Congress to repair the broken web of regulations.
The hearing was held in bankruptcy court in Wilmington Delaware on Tuesday 22. The live broadcast on YouTube and Zoom attracted approximately 1,500 people to watch.
After FTX filed for bankruptcy, it was led by new CEO John Ray. The new management appeared in court on Tuesday (22) and its legal counsel James Bromley detailed how FTX took the next step into SBF.
Bromley described the collapse of FTX as perhaps one of the most sudden and difficult bankruptcies in the history of American corporations and even global corporations.
An attorney representing FTX now hopes to sell her still-robust 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 US Department of Justice and the US Attorney’s Office Cybercrime Team in New York.
FTX said on Saturday it was conducting a strategic review of its global businesses and was preparing to sell or restructure some businesses.
Bromley also described that although FTX is a multinational company, it operates as “private territory” of SBF, which once spent $300 million buying homes and vacation rentals for high-level executives.
Reuters previously reported that FTX had spent about $120 million in the Bahamas over the past two years, purchasing at least 19 properties for its parents and company executives.
Wray accused SBF of cooperating with the Bahamas to “sabotage” the US bankruptcy and move assets overseas. The well-known lawyer who once worked on Anlong’s reorganization case complained that in his 40-year career he has never seen corporate governance and bankruptcy financial disclosures lack credibility.
cryptocurrencyExchange clients lack safety net protections such as deposit insurance and much of the rectification work of FTX or some recent currency circle bankruptcy incidents falls to the bankruptcy courts and these courts are still trying to clarify and answercryptocurrencyVarious problems of affected families.
Judge John Dorsey agreed to several of FTX’s offers to help the company with its bankruptcy, including keeping the names of clients whose funds have been frozen confidential until next hearing next month.
FTX recently announced preliminary information that it owes about $3.1 billion to its 50 largest creditors, but declined to disclose the names of the creditors on the grounds that this move would destabilize the currency circle, expose clients to the threat of hackers and could become drowned by competitors The goal.
Additionally, the attorney said FTX has received letters from the Senate and House of Representatives and is expected to attend a congressional hearing in December.
Warren drops letter calling for tougher regulation
FTX’s bankruptcy caught the attention of both Republicans and Democrats. Warren, a Democrat, wrote a letter to the Wall Street Journal (WSJ), describing the FTX crash as a wake-up call: “The United States should strengthen enforcement of existing laws before the next currency disaster crashes the ‘economy.”
Warren said in the presentation that the US Securities and Exchange Commission (SEC) should do thiscryptocurrencyThe stance is tougher and calls on Congress to increase funding for the SEC, the Justice Department and the Treasury Department.
