FTX debtors seek subpoenas for Sam Bankman-Fried’s inner circle – Crypto News Today

FTX debtors seek subpoenas for Sam Bankman-Fried’s inner circle

A movement deposit of the District of Delaware Bankruptcy Court in the United States seeks to glean valuable information from people like Gabriel Bankman-Fried and Barbara Fried, the brother and mother of the founder of FTX.

According to the filing, FTX and its debtors are suing real estate assets owned by the company and investors. However, not all of Bankman-Fried’s relatives responded with requests for information. The filing indicates that the legal representatives of Zhe “Constance” Wang, COO of FTX Trading, and Sam’s father, Joseph Bankman, are the only parties who have agreed to cooperate in information sharing.

After filing for bankruptcy, FTX and its debtors worked to locate and secure assets to provide some semblance of accountability and preserve the value of stakeholder assets. But, as previously reported by Cointelegraph, FTX’s original management had poor record keeping and security checks, which exacerbated recovery efforts.

The filing also takes aim at the former FTX CEO, citing public promises to ‘help customers’ and ‘explain what happened’ on social media as lip service given his reluctance to participate. voluntarily in bankruptcy proceedings.

“Yet, despite these statements, Mr. Samuel Bankman-Fried has not responded to or complied with the requests on a voluntary basis. Accordingly, a court-authorized subpoena is required.

Bankman-Fried isn’t the only FTX insider who hasn’t complied with requests for cooperation. Former FTX Group CTO Gary Wang and Alameda Research CEO Caroline Ellison declined requests for information, while Barbara Fried “ignored” requests completely.

FTX Group co-founders Nishad Singh and Gabriel Bankman-Fried had so far provided no “meaningful commitment” or response to collaborate in the ongoing bankruptcy proceedings.

The subpoena seeking more information from Bankman-Fried and his advisers is meant to help recover “substantial additional real estate assets” that were transferred before FTX collapsed.

The filing also argued that courts routinely order former executives and advisers to produce information in bankruptcy cases and that similar action should be taken with the FTX debacle.

As the bankruptcy proceedings continue, FTX and the parties involved have requested subpoenas seeking information and documents from close relatives of former CEO Sam Bankman-Fried.