“A substantial amount of assets” belonging to the collapsed cryptocurrency exchange company have “either been stolen or are missing,” said FTX’s lawyer at a bankruptcy hearing. The company’s 30-year-old co-founder, Sam Bankman-Fried, resigned.
At the hearing, Bromley also described FTX as a company “run by inexperienced and unsophisticated individuals,” adding that “some or all of them were also compromised individuals.” FTX, he said, “is one of the most abrupt and difficult company collapses in the history of corporate America.”
The revelations sparked more questions about the implosion of what had been considered a cornerstone of the nascent digital asset industry. Regulators, lawyers and investors are struggling to understand precisely what happened at FTX, as its undoing continues to send shock waves through the interconnected crypto economy.this month after a bank run caused a liquidity crisis. Shortly after, the company’s 30-year-old chief executive and co-founder, Sam Bankman-Fried, resigned.
A message left for Bromley’s office at his New York firm, Sullivan & Cromwell, was not immediately returned. A message to Bankman-Fried was not immediately returned. The Justice Department, Securities and Exchange Commission and Commodity Futures Trading Commission have launched probes of FTX. They are investigating whether the exchange skirted rules on safeguarding consumer deposits and relationships with trading affiliates, said four people familiar with the inquiries.The Southern District of New York’s cybercrime unit has also opened a criminal investigation of FTX, Bromley told the court Tuesday.
in a Nov. 10 statement that it was pausing withdrawals and “was not able to operate business as usual.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
FTX Lawyer Says ‘Substantial Amount’ of Crypto Firm’s Assets Stolen or MissingA “substantial amount” of assets of failed crypto exchange FTX are presently missing and may have been stolen as a liquidity crunch precipitated a crisis of leadership and led the firm to collapse, its lawyer said in court
Read more »
FTX lawyer says 'substantial amount' of assets are either stolen or missing | CNN BusinessThe full extent of FTX's financial disarray is becoming clearer as the failed crypto exchange's new management combs for cash as part of the bankruptcy process.
Read more »
FTX hacker dumps 50,000 ETH, still among top 40 Ether holdersThe FTX hacker drained nearly $447 million out of multiple FTX global and FTX.US exchange wallets just hours after the crypto exchange filed for Chapter 11 bankruptcy on Nov. 11.
Read more »
Coinbase, MicroStrategy Bonds Tank as FTX Collapse Dents Institutional Confidence in CryptoHigh bond yields are reflective of sharply higher interest rates as well as genuine skepticism about the long-term viability of crypto amongst institutional investors, one investor said.
Read more »
Bitcoin drops to 1-week low, ether slides 7% as FTX collapse ripples through crypto marketThe cryptocurrency market has come under pressure over the last two weeks as problems at major exchange FTX came to light.
Read more »
Traders Flee Crypto Markets After FTX CollapseThe wild-west days of crypto markets are back again as the large trading houses that once thrived on arbitraging price gaps pull back in the wake of FTX’s collapse. That’s opening up profitable opportunities for anyone that still dares to trade.
Read more »