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FTX Bankruptcy Hearing Details Prior Supervision by ‘Inexperienced and Inexperienced Persons’ • CableFree TV

hearings that will to determine the fate of FTX, once one of the largest crypto exchanges in the world, began on Tuesday in the United States Bankruptcy Court for the District of Delaware.

“We are here on an unprecedented issue, and I am not saying these words lightly,” James Bromley, partner at Sullivan & Cromwell and co-head of the company’s global restructuring practice, said during the hearing. “This is the hearing on the first day, more than a week after they were filed; which in itself is rare. But what do we have here […] it’s a different kind of animal.”

According to Bromley, prior to filing for bankruptcy, FTX “was controlled by a small group of inexperienced and inexperienced individuals.” “Unfortunately, the evidence indicates that some or all of these have been compromised.”

The cryptocurrency exchange fell out of favor earlier this month and filed for Chapter 11 bankruptcy 11th of November. At the time, FTX CEO and Founder Sam Bankman-Fried resigned from his role, and Enron veteran John J. Ray III was appointed as the new CEO. Ray attended Tuesday’s hearing along with more than 1,100 people who joined the hearing via a Zoom meeting link and YouTube streaming.

By Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org