Relatives and close people of FTX founder will be subpoenaed
2023.02.01 12:41
Relatives and close people of FTX founder will be subpoenaed
By Tiffany Smith
Budrigannews.com – FTX and affected parties have subpoenaed relatives of former CEO Sam Bankman-Fried for information and documents as bankruptcy proceedings continue.
Gabriel Bankman-Fried and Barbara Fried, the FTX founder’s brother and mother, are the targets of a motion filed in the United States Bankruptcy Court for the District of Delaware.
The filing says that FTX and its debtors are looking for investors’ and company’s estate assets. However, not everyone in Bankman-Fried’s circle has responded with inquiries. According to the filing, the only parties who have agreed to cooperate with the sharing of information are Sam’s father, Joseph Bankman, and Zhe “Constance” Wang’s legal representatives.
In order to maintain the value of stakeholder assets and provide some semblance of accountability following their bankruptcy filing, FTX and its debtors have been searching for and securing assets. However, poor security and record-keeping practices by the initial management of FTX hampered recovery efforts.
The filing also takes aim at the former CEO of FTX, claiming that his public promises to “help customers” and “explain what happened” on social media were just lip service given his reluctance to participate voluntarily in the bankruptcy process.
“However, Mr. Samuel Bankman-Fried has not responded to or complied with the Requests on a voluntary basis, despite these statements. Consequently, a court-issued subpoena is required.
Bankman-Fried isn’t the only FTX insider who hasn’t responded to requests for assistance. Gary Wang, the former chief technology officer of the FTX Group, and Caroline Ellison, CEO of Alameda Research, both turned down requests for information, while Barbara Fried had completely “ignored” requests.
Nishad Singh and Gabriel Bankman-Fried, co-founders of the FTX group, have not responded with any “meaningful engagement” or offer to work with the ongoing bankruptcy proceedings.
It is claimed that the subpoena, which seeks additional information from Bankman-Fried and his advisors, will assist in the recovery of “substantial additional estate assets” that were transferred prior to the collapse of FTX.
The filing also argued that the FTX saga should be treated in a similar way because courts frequently require information from former executives and advisors in bankruptcy cases.
