A motion filed in the United States Bankruptcy Court for the District of Delaware seeks valuable information from people like Gabriel Bankman-Fried and Barbara Fried, brother and mother of the FTX founder.
According to the filing, FTX and its debtors are pursuing equity assets belonging to the company and investors. However, noo All of Bankman-Fried’s inner circle have responded to requests for information. The file indicated that the legal representatives of Zhe “Constance” Wang, the director of operations of FTX Trading, and Sam’s father, Joseph Bankman, are the only parties who have agreed to cooperate in the exchange of information.
After filing for bankruptcy, FTX and its debtors have been working to locate and secure assets to provide some semblance of accountability and preserve the value of the assets for the parties concerned. But, as Cointelegraph previously reported, FTX’s original management had poor record-keeping and security controls, which has exacerbated recovery efforts.
The dossier also points to FTX’s former CEO, citing public promises to “help clients” and “explain what happened” on social media as hot air given his reluctance to voluntarily assist in bankruptcy proceedings.
“However, despite these statements, Mr. Samuel Bankman-Fried has not voluntarily responded to or complied with the Requests. As a result, a court authorized subpoena is necessary.”
Bankman-Fried isn’t the only FTX insider who hasn’t acceded to requests for cooperation.. Gary Wang, former CTO of FTX Group, and Caroline Ellison, CEO of Alameda Research, declined requests for information, while Barbara Fried had “ignored” them entirely.
The co-founders of the FTX group, Nishad Singh and Gabriel Bankman-Fried, had not to date offered any “significant commitment” or response to help with the ongoing bankruptcy proceedings.
The subpoena for more information from Bankman-Fried and its advisers is intended to help recover “significant additional equity assets” that were transferred in the run-up to FTX’s bankruptcy.
The petition also argues that courts routinely order former executives and advisers to provide information in bankruptcy cases and that similar steps should be taken in the case of the FTX debacle.
While the bankruptcy proceeding continues, FTX and affected parties have requested subpoenas to obtain information and documents from close family members of former CEO Sam Bankman-Fried.
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