As bankruptcy proceedings continue, FTX and affected parties have requested subpoenas for information and documents from close relatives of former CEO Sam Bankman-Fried.<\/p>\n
A motion filed\u00a0in 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.<\/p>\n
According to the filing, FTX and its debtors are pursuing estate assets belonging to the company and investors. However, not all Bankman-Fried\u2019s inner circle has replied with requests for information. The filing indicated that legal representatives of Zhe \u201cConstance\u201d Wang, chief operating officer of FTX Trading and Sam\u2019s father, Joseph Bankman, are the only parties that have agreed to cooperate with information sharing.<\/p>\n
After filing for bankruptcy, FTX and its debtors have been working 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\u2019s original management had poor record keeping and security controls, which exacerbated recovery efforts.<\/p>\n
The filing also takes aim at the former FTX CEO, citing public promises to \u201chelp customers\u201d and “explain what happened\u201d on social media as lip service, given his reluctance to voluntarily assist in bankruptcy proceedings.<\/p>\n
\u201cYet, despite these statements, Mr. Samuel Bankman-Fried has not responded to or complied with the Requests on a voluntary basis. As a result, a court-authorized subpoena is necessary.\u201d<\/p><\/blockquote>\n
Bankman-Fried is not the only FTX insider that has not obliged requests for cooperation. Former FTX group chief technology officer Gary Wang and Alameda Research CEO Caroline Ellison declined requests for information, while Barbara Fried had \u201cignored\u201d requests altogether. <\/p>\n
FTX group co-founders Nishad Singh and Gabriel Bankman-Fried have not provided any \u201cmeaningful engagement\u201d or response to collaborate with the ongoing bankruptcy proceedings.<\/p>\n
The subpoena seeking to glean more information from Bankman-Fried and his advisers is touted to help recover \u201csubstantial additional estate assets\u201d which were transferred in the lead-up to the collapse of FTX.<\/p>\n
The filing also argued that courts routinely order former executives and advisers to produce information in bankruptcy cases and similar action should be taken with the FTX debacle. <\/p>\n