FTX bankruptcy hearing begins at Delaware

The hearing for the cryptocurrency exchange FTX, which overshadowed the market earlier this month due to the mismanagement that resulted in the collapse of the cryptocurrency exchange while requiring billions of dollars to support the business, which later resulted in customer withdrawals billions of dollars were stopped from the exchange. Cryptocurrency exchange FTX has filed for Chapter 11 bankruptcy after it was confirmed that the exchange has no proof of reserves and needs about $8 billion in bailout. The reason for a lot of attention from the regulatory authorities, why such a company will have mismanagement of funds and what the company's funds have been through. That's why the Department of Justice and the Securities Exchange Commission dug deep into the case to find out exactly what's going on with the company.

FTX Bankruptcy proceedings begin

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The hearing begins in federal court, and FTX is represented by the law firm of Sullivan and Cromwell at this Delaware hearing. However, in a federal court, Jame Bromley, a partner at the law firm Sullivan and Cromwell, said that the mismanagement of the exchange has put the company in the financial situation they are in now by giving the exchange's CEO Bankman-Frieds the blame to place the companies as his personal fiefdom. He added that a significant amount of crypto assets worth millions of dollars in the exchange are being stolen from the platform shortly after FTX filed for bankruptcy.

Bromley gave the hearing in more detail the history of how FTX manages funds and the circumstances that led to the company's collapse. He also shared his investigation into the details the former CEO regretted filing for bankruptcy.

The CEO filed for bankruptcy after consulting with an attorney and his father, and also apologized in a letter to employers, adding that he regretted filing the Chapter 11 docs. Why? Because a potential billion-dollar interest prop up into the company eight minutes after he signed the Chapter 11 documents.

Between those funds, the billions of dollars in collateral the company still had, and the interest we received from other parties, I think we probably could have achieved great value for customers and saved the company," Bankman-Frieds said.

The part I am waiting to hear from this hearing is whether the customers' deferred funds will be refunded to them. I will keep you informed about that.


Thank you for your attention

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Image source: pixabay

Posted Using LeoFinance Beta



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5 comments
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All of this audience stuff looks like staged theater, it's assumed that some of these characters are linked to the FTX bankruptcy.

Posted Using LeoFinance Beta

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Exactly my friend they're trying to act some dramatic here. Lol

Thanks for stopping by my friend

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