{"id":14746,"date":"2022-11-23T17:33:36","date_gmt":"2022-11-23T17:33:36","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bankruptcy-lawyers-say-ftx-was-operated-by-inexperienced-and-unsophisticated-individuals-bitcoin-news\/"},"modified":"2022-11-23T17:33:36","modified_gmt":"2022-11-23T17:33:36","slug":"bankruptcy-lawyers-say-ftx-was-operated-by-inexperienced-and-unsophisticated-individuals-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bankruptcy-lawyers-say-ftx-was-operated-by-inexperienced-and-unsophisticated-individuals-bitcoin-news\/","title":{"rendered":"Bankruptcy Lawyers Say FTX Was Operated by ‘Inexperienced and Unsophisticated Individuals’ \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n<\/div>\n

On Tuesday, the attorneys representing FTX told the court that a \u201csubstantial amount of assets have either been stolen or are missing\u201d and further stressed to the bankruptcy court that FTX executives left the lawyers James Bromley and Sullivan Cromwell with limited information. Bromley further likened the former FTX CEO Sam Bankman-Fried\u2019s (SBF) crypto empire to his \u201cpersonal fiefdom\u201d and in the end, the attorney said, \u201cthe emperor had no clothes.\u201d<\/strong><\/p>\n

Bankruptcy Lawyers Outline FTX\u2019s Financial Issues, Lawyer Says Case Is One of the Most \u2018Difficult Collapses in the History of Corporate America\u2019<\/h2>\n

The Delaware bankruptcy court heard from FTX lawyers James Bromley and Sullivan Cromwell on Tuesday, and it seems FTX\u2019s financial records do not look good. According to court documents<\/a>, FTX has a cash balance of around $1.2 billion and this weekend a list of FTX\u2019s 50 top creditors show the entities are owed roughly $3.1 billion.<\/p>\n

However, the list of the creditors, at least for right now, remains confidential and names are redacted. According to a report<\/a> from the New York Times (NYT), roughly 500 individuals logged into the court\u2019s Zoom broadcast on Tuesday. At the hearing, Bromley told the court that a \u201csubstantial amount of assets have either been stolen or are missing\u201d from the FTX platform.<\/p>\n

The attorney remarked that lawyers understand \u201cmany people that are looking to get their money back immediately,\u201d and Bromley insists the team is \u201cworking towards being able to do that.\u201d The attorneys had a lot of descriptions for FTX and Alameda Research executives, and Bromley called SBF\u2019s empire his \u201cpersonal fiefdom\u201d that ended by showing the \u201cemperor had no clothes.\u201d<\/p>\n

Restructuring executives and lawyers are looking to \u201cbring order to disorder,\u201d Bromley noted. FTX executives were also called \u201cinexperienced\u201d and \u201cunsophisticated individuals.\u201d Bromley\u2019s statements echoed the commentary written by FTX\u2019s new CEO, John Ray, who said<\/a> the FTX bankruptcy was worse than Enron\u2019s.<\/p>\n

Bromley also told the court that FTX suffered from \u201ccyberattacks\u201d referring to when FTX\u2019s wallets were hacked<\/a> the day the company filed for bankruptcy protection. Bromley further mentioned that FTX\u2019s headquarters moved around a lot in regions like Berkeley, California, Hong Kong, the Bahamas, and Miami.<\/p>\n

However, despite the constant moving, FTX was \u201ceffectively under the control of Mr. Bankman,\u201d Bromley detailed. FTX lawyers also detailed that the Bahamas-based joint provisional liquidators have agreed to transfer the case to the district of Delaware. Overall, Bromley said the FTX bankruptcy case represented \u201cone of the most abrupt and difficult collapses in the history of corporate America.\u201d<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
alameda<\/a>, Alameda Research<\/a>, assets stolen or are missing<\/a>, attorney<\/a>, bahamas<\/a>, Bankruptcy<\/a>, Bankruptcy Case<\/a>, Bankruptcy Creditors<\/a>, Berkeley<\/a>, california<\/a>, collapse<\/a>, corporate America<\/a>, Court Filings<\/a>, filings<\/a>, FTX Bankruptcy case<\/a>, FTX collapse<\/a>, Hong Kong<\/a>, James Bromley<\/a>, John Ray<\/a>, lawyer<\/a>, miami<\/a>, New FTX CEO<\/a>, Sam Bankman-Fried<\/a>, sbf<\/a>, Sullivan Cromwell<\/a><\/div>\n<\/div>\n

What do you think about the FTX bankruptcy case and the lawyer\u2019s statements? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

\n
\n<\/div>\n
\n
\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n