What to expect from FTX’s second bankruptcy hearing today; LedgerX sale, doxing creditors, custody of funds

It has been a agelong week for the FTX empire arsenic its laminitis Sam Bankman-Fried was imprisoned successful the Bahamas and acceptable to look proceedings successful the United States for wealth laundering and wired fraud charges from the SEC, CFTC, and SDNY. 

The failed crypto speech FTX is acceptable to clasp its 2nd proceeding earlier the bankruptcy tribunal of Delaware connected Dec. 16, arsenic the justice rules connected a petition to redact confidential accusation of FTX customers.

During FTX’s first bankruptcy hearing connected Nov. 22, the FTX CEO John Ray said that FTX was a implicit nonaccomplishment arsenic FTX was grossly mismanaged. The speech was successful the power of a tiny radical of inexperienced and unsophisticated individuals.

Debtors of FTX had requested to person the idiosyncratic accusation of investors and firm clients redacted for privateness reasons.  The U.S. Trustee opposed the request, citing the request to beryllium transparent done the bankruptcy process.

Decision to dox FTX Creditors

According to the bankruptcy court’s agenda for Dec. 16, it volition deliberate connected FTX’s petition to redact definite confidential accusation of customers today.

However, a portion of the docket stated that the FTX debtors are nary longer seeking to support the grounds sealed. Consequently, accusation connected FTX creditors is apt to beryllium doxed.

FTX proceeding filing

The tribunal volition besides person objections to Bloomberg, Financial Times, New York Times, and Dow Jones’s petition to merchandise each idiosyncratic accusation of FTX creditors.

The docket added that a determination to authorize BitGo arsenic the custodian of FTX’s assets has been adjourned to Jan. 11, 2023.

Additionally, the tribunal volition deliberate connected a question to merchantability 4 FTX businesses namely FTX Japan, FTX Europe, Embed, and Ledger X, successful an effort to rise liquidity to marque customers whole.

Court appoints Creditors Committee

In the meantime, the tribunal has approved the assignment of FTX’s Committee of Unsecured Creditors.  The committee volition beryllium actively progressive successful the bankruptcy process to correspond the involvement of FTX creditors.

The appointed members of the creditors’ committee include:

• Zachary Bruch
• Coincident Capital International
• GGC International (Bermuda limb of Genesis)
• Octopus Information
• Pulsar Global
• Larry Qian
• Acaena Amoros Romero
• Wincent Investment Fund PCC
• Wintermute Asia PTE

The 2nd bankruptcy proceeding of FTX is scheduled to clasp connected December 16, 2022, astatine 10:am ET via Zoom.

The station What to expect from FTX’s 2nd bankruptcy proceeding today; LedgerX sale, doxing creditors, custody of funds appeared archetypal connected CryptoSlate.