Friday, July 12, 2024

FTX and Affected Parties Request Subpoenas for Information from close relatives

As the bankruptcy procedures go forward, FTX and the impacted parties have issued subpoenas demanding information and documents from close relatives of the company’s former chief executive officer, Sam Bankman-Fried.

A request that was submitted to the United States Bankruptcy Court for the District of Delaware in an effort to get useful information from individuals such as Gabriel Bankman-Fried and Barbara Fried, the founder of FTX’s brother and mother, respectively, has been granted.

According to the complaint, FTX and its creditors are attempting to acquire estate assets that belong to the firm as well as the investors. On the other hand, not every member of Bankman-close Fried’s circle has responded with information demands. According to the petition, the only parties that have agreed to participate with information sharing are the legal representatives of Zhe “Constance” Wang, chief operating officer of FTX Trading, and Joseph Bankman, Sam’s father.

The complaint also takes aim at the former chief executive officer of FTX, arguing that his public vows to “help consumers” and “explain what occurred” on social media were little more than lip service given his refusal to voluntarily engage in the procedures of the bankruptcy.

Nevertheless, in spite of these assertions, Mr. Samuel Bankman-Fried has not voluntarily replied to or cooperated with the Requests. As a consequence of this, a subpoena that has been granted by the court is required.

It is not only Bankman-Fried who has disobeyed demands for assistance from FTX authorities; other insiders have done the same. Requests for information that were made to Gary Wang, the former chief technology officer of FTX group, and Caroline Ellison, the CEO of Alameda Research, were both turned down, while Barbara Fried “ignored” the requests entirely.

Nishad Singh and Gabriel Bankman-Fried, who were both co-founders of the FTX group, have not offered any “serious participation” or reaction in order to participate with the continuing bankruptcy procedures.

The subpoena that was issued to Bankman-Fried and his advisors in an effort to get further information is being promoted as a tool that will assist in the recovery of “significant additional estate assets” that were moved in the time leading up to the failure of FTX.

The brief also contended that courts often force former executives and advisors to submit documents in bankruptcy proceedings, and that similar action should be done with the FTX catastrophe because of the similarities between the two situations.

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