FTX During Bankruptcy Hearing: ‘Substantial’ Assets Stolen Or Missing
FTX Bankruptcy Hearing news: During the bankruptcy hearing, the attorney representing FTX stated that a large amount of assets had been stolen or gone missing. Attorney Bromley stated that the FTX debtors weren’t particularly well managed. The attorney opened by describing the FTX case in his opening remarks as ‘unprecedented. He also stated that top FTX executives, including Sam Bankman Fried, kept unreliable records.
“There was a bank run in November and FTX is controlled a small group of people, including Sam Bankman-Fried who kept unreliable records. A large amount of assets were either stolen or have gone missing.”
FTX’s main goal is to maximize assets in order to be able return dues investors. Bromley stated that maximization is the core objective of FTX, regardless of whether it involves selling businesses or reorganizing companies. During the hearing, Bromley spoke out about the FTX meltdown. He said that it occurred very quickly and was quite shocking. He described the meltdown as “one the most difficult and abrupt corporate collapses in American corporate history.”
Also read: FTX Drainer Swapping Ethereum to Bitcoin; Will It Impact ETH Prices?
A Fraction of FTX Employees Are Remain
Bromley stated that the crypto exchange has approximately 260 employees. The FTX Token, (FTT), is currently trading at extremely low levels compared to the October range of $22.50. According to CoinMarketCap, FTT’s price is at $1.31 as of writing. This is an increase of 2.10% over the past 24 hours.
The FTX Group announced on November 12 that it would file voluntary chapter 11 bankruptcy proceedings. FTX stated that the decision was made to maximize its assets in order to benefit investors. Sam Bankman-Fried, the CEO, was also announced. John Ray has been named the new chief executive officer of FTX.
Also read: Binance Refuses Any Investment to Save Crypto Lender Genesis. Bankruptcy Ahead
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