BlocksInform
A motion filed in the United States Bankruptcy Court for the District of Delaware seeks to glean valuable information from the likes of Gabriel Bankman-Fried and Barbara Fried, the brother and mother of the FTX founder.
Depending on the deposit, ftx and its debtors operate corporate and investor-owned assets. However, not all relatives of bankman-fried have responded with information requests. The deposit stated that zhe's legal representatives "constance" wang, ftx trading's coo, and the father of Sam, joseph bankman, are the only parties willing to cooperate in the exchange of information.
After declaring bankruptcy, ftx and its obligors worked to locate and secure the assets in order to provide a semblance of liability and preserve the value of the assets of the stakeholders. But, as previously reported by Cointelegraph, FTX’s original management had poor record keeping and security controls, which has exacerbated recovery efforts.
The deposit also applies to the former executive director of the FTX, citing public promises to "help clients" and "explain what happened" on social media as wishful thinking, given its unwillingness to voluntarily participate in bankruptcy proceedings.
"Despite these statements, however, Mr. Samuel Bankman-Fried did not respond or voluntarily comply. Therefore, a subpoena granted by the court is required."
Bankman-Fried is not the only FTX insider not to have applied for co-operation. Former ftx group research director Gary Wang and Alameda, Caroline Ellison, refused the information requests, while Barbara Fried had "ignored" the requests.
To date, the co-founders of ftx, Nishad Singh and Gabriel Bankman-fried, have not provided "meaningful participation" or an answer to assist in the ongoing bankruptcy proceedings.
The subpoena seeking to glean more information from Bankman-Fried and his advisors is touted to help in recovering ‘substantial additional estate assets’ which were transferred in the lead-up to the collapse of FTX.
The filing also argued that the courts regularly instruct former executives and advisers to produce information in bankruptcy cases and similar measures should be taken with the ftx debacle.
As the bankruptcy process continues, the FTX and concerned parties have requested subpoenas to obtain information and documents from close family members of former CEO Sam Bankman-Fried.
