FTX has recovered $5B in liquid assets, bankruptcy lawyer says

FTX has recovered B in liquid assets, bankruptcy lawyer says

FTX investor Mark Miller discusses the fallout from FTX after losing $25,000 in the collapse.

Bankrupt cryptocurrency exchange FTX has recovered upwards of $5 billion in liquid assets, an attorney for the failed platform told a judge Wednesday.

FTX has recovered B in liquid assets, bankruptcy lawyer says

The FTX Arena name is still visible where the Miami Heat basketball team plays in Miami on Nov. 12, 2022. Lawyers for FTX disclosed Wednesday that more than $5 billion in liquid assets have been recovered so far. (AP Photo/Marta Lavandier / AP Newsroom)

That figure includes cash, liquid digital assets and investments securities, the lawyer said.

FTX BUSINESS SALES DRAW OVER 100 EXPRESSIONS OF INTEREST

The revelation comes as FTX’s new leadership, led by current chief executive John J. Ray III, try to recover what they can of customers’ and investors’ funds following the firm’s collapse under previous CEO and founder Sam Bankman-Fried.

FTX CEO John Ray III testifies before the House Financial Services Committee

John Ray, CEO of FTX Cryptocurrency Derivatives Exchange, speaks during a House Financial Services Committee hearing investigating the collapse of FTX in Washington, D.C., on Dec. 13, 2022. (Al Drago/Bloomberg via Getty Images / Getty Images)

Prior to its downfall, FTX was the world’s second-largest crypto exchange and was once valued at an estimated $32 billion.

DOJ

… Read the rest
January 22, 2023 by ATTORNEY

Revealing FTX Customer Names Would Hurt ‘Potential Reboot’, Bankruptcy Lawyer Says

Releasing the names of bankrupt crypto exchange FTX’s 9 million customers could harm a “potential reboot” of the company, attorneys for the creditors committee argued on Wednesday.

It’s the latest development in an ongoing dispute over whether the names of FTX’s creditors ought to be made available to the public. Beyond privacy concerns, lawyers for the creditors committee are now arguing that revealing those names could further harm the value of the company, and therefore harm creditors.

“There were an awful lot of retail investors here and so there is inherent value within those lists and that’s uncontroverted—I think everyone agrees with that,” Paul Hastings partner Kris Hansen, an attorney representing the creditors committee, said during a court hearing in Delaware.

“So in balancing that, we looked at it and said we’ve got two major tasks here,” said Hansen. “One is to assess the value associated with these assets from a sale perspective and to assess the value associated with these assets for a potential reboot is how we’ve been referring to it on our side. The reboot is complicated,” he said.

Hastings’s referral to the “value” of the list has to do with one of the arguments being

… Read the rest
January 21, 2023 by ATTORNEY

FTX Fights Sullivan & Cromwell Removal Attempt From Bankruptcy

Sullivan & Cromwell’s removal or limitation as bankruptcy counsel for FTX would “severely, if not irreparably” harm customers and creditors, the cryptocurrency exchange’s CEO John Ray told a judge.

An “army” led by the firm’s lawyers have worked under Ray’s supervision around the clock for the past two-plus months, he told Delaware Bankruptcy Court Judge John T. Dorsey in a filing. The work has stopped assets from being depleted and aided federal investigations, he said.

“The advisors are not the villains,” Ray said. “This is not the time to distract and burden the debtors.”

FTX in the Tuesday filings is defending Sullivan & Cromwell’s role as its lead bankruptcy counsel after four US senators questioned the firm’s work for the crypto exchange prior to its implosion. The US Trustee has also raised concerns about whether the firm’s disclosures have been sufficient.

Sullivan & Cromwell has advised FTX since the exchange first initiated Chapter 11 proceedings in November, listing assets and liabilities of at least $10 billion. Dorsey is scheduled to weigh in on FTX’s application to keep the firm as its main bankruptcy counsel in a Friday hearing.

In a court filing on behalf of FTX, the firm said that

… Read the rest
January 20, 2023 by ATTORNEY

Bankruptcy lawyer urged clients to spread COVID-19, judge says

(Reuters) – A Colorado bankruptcy judge has sanctioned an Edgewater, Colorado lawyer for “blatant misconduct,” including advice he gave former clients to try to infect the trustee overseeing their case with COVID-19 or another illness.

U.S. Bankruptcy Judge Thomas McNamara on Tuesday suspended attorney Devon Barclay from practicing in Colorado bankruptcy court for three years over his conduct while representing Matthew and Nicole Mennona, a Littleton, Colorado couple who sought Chapter 7 relief during the pandemic.

Barclay forged his clients’ signatures on their Chapter 7 petition, tried to get the bankruptcy case dismissed multiple times under “false assertions of fact,” and ignored a trustee’s discovery efforts, leading to his clients getting hit with a $2,783.50 sanction, McNamara found.

McNamara also cited a Sept. 9, 2021, email from Barclay to his clients about a letter that was intended to be sent to another lawyer. “If either of you have COVID or some other highly infectious, nasty disease — or if you know someone who does — please make sure they lick the envelope and handle it as much as possible,” Barclay said in the email.

It is unclear from the court record whether the comment was meant as a joke. Barclay

… Read the rest
January 19, 2023 by ATTORNEY
March 2025
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31