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FTX and Affected Parties Request Subpoenas for Next of Kin Information

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FTX and Affected Parties Request Subpoenas for Next of Kin Information

Source: blockchain.news

As bankruptcy proceedings progress, FTX and affected parties have issued subpoenas requesting information and documents from close family members of the company’s former CEO, Sam Bankman-Fried.

A request was granted and sent to the United States Bankruptcy Court for the District of Delaware in an effort to obtain useful information from the likes of Gabriel Bankman-Fried and Barbara Fried, the brother and mother of the FTX founder, respectively.

According to the complaint, FTX and its creditors are trying to acquire real estate assets owned by the company and investors. On the other hand, not all members of the Bankman-close Fried circle have responded with demands for information. According to the petition, the only parties that have agreed to participate in the information sharing are the legal representatives of Zhe “Constance” Wang, the COO of FTX Trading, and Joseph Bankman, Sam’s father.

The complaint also targets the former CEO of FTX, arguing that his public promises to “help consumers” and “explain what happened” on social media were little more than lip service given his refusal to voluntarily participate in bankruptcy proceedings. .

However, despite these assertions, Mr. Samuel Bankman-Fried has not voluntarily responded to or cooperated with the Requests. As a consequence of this, a summons is required that has been granted by the court.

It’s not just Bankman-Fried who has defied FTX authorities’ demands for assistance; other experts have done the same. Requests for information made to Gary Wang, former CTO of FTX Group, and Caroline Ellison, CEO of Alameda Research, were denied, while Barbara Fried “ignored” the requests entirely.

Nishad Singh and Gabriel Bankman-Fried, both co-founders of the FTX group, have not offered any “serious involvement” or reaction to participate in the ongoing bankruptcy proceedings.

The subpoena that was issued to Bankman-Fried and its advisers in an effort to obtain more information is touted as a tool that will assist in the recovery of “significant additional equity assets” that were moved in the time prior to FTX’s bankruptcy.

The brief also argued that courts often compel former executives and advisers to file documents in bankruptcy proceedings, and that similar action should be taken with the FTX catastrophe because of the similarities between the two situations.

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