Bankrupt crypto exchange FTX, led by newly appointed CEO John Ray III, has launched an intense legal campaign to regain control and recover assets in the pursuit of financial restoration.Thank you for reading this post, don't forget to subscribe!
As founder Sam Bankman-Fried awaits possible sentencing and could face up to 114 years in prison if convicted, FTX’s asset recovery plan continues under Ray’s leadership.
FTX bankruptcy battle continues to escalate
In a recent petition filed in the US Bankruptcy Court for the District of Delaware, FTX issued a subpoena to artificial intelligence (AI) firm Center for AI Safety (CAIS), demanding accounting records and information related to payments, agreements and contracts. done. $6.5 million investment.
The motions filed on behalf of the debtors seeking Chapter 11 bankruptcy protection on Nov. 11 and Nov. 14, 2022, said the debtors are operating their businesses and managing their assets as debtors under the Bankruptcy Code. Are.
It also highlights the appointment of an official committee of unsecured creditors by the US trustee. FTX’s investigation revealed that CAIS received transfers of at least $6.5 million in debtors’ funds between May and September 2022.
As part of its ongoing efforts to understand the debtors’ financial landscape, transactions and assets, FTX has requested CAIS to prepare relevant documents and information relating to payments, agreements, communications and other relevant details.
debtors want answers
According to the motion filed on October 25, despite efforts by the debtors to engage in cooperative negotiations and resolve the matter amicably, CAIS has rejected voluntary requests for accounting and failed to respond to formal correspondence. The filing reads:
Debtors have attempted to voluntarily engage in a cooperative meeting and conference process to obtain information from CAIS. The debtors have so far failed. In a phone call on August 22, 2023, counsel for CAIS expressed reluctance to provide its records related to the transfer to the debtors. In emails dated October 2-6, 2023, the debtors requested information about the amount of debtor funds spent by CAIS, the amount of debtor funds it holds, and its financial condition. CAIS declined to provide that information.
The motion concludes by stating that notice of this action has been provided to the relevant parties, including the U.S. Trustee, counsel to the Committee, the Securities and Exchange Commission, the Internal Revenue Service, the U.S. Department of Justice, the U.S. Attorney for the District of Columbia, and the U.S. Attorney for the District of Columbia. Delaware, and CAIS itself.
FTX’s native token, FTT, is trading at $1.22, marking a return to the $1 level for the first time since November 2022. Although it has experienced a decline of more than 5% in the last 24 hours, the token has shown notable gains. Over the past seven days, there is an upward trend of 17%.
The value of the token has declined by more than 95% when considering a time frame of one year.
Featured image from Shutterstock, chart from tradingview.com