a movement archived in the United States Bankruptcy Court for the District of Delaware seeks valuable information from the likes of Gabriel Bankman-Fried and Barbara Fried, the brother and mother of the founder of FTX.
According to the filing, FTX and its debtors are seeking equity assets belonging to the company and investors. However, not all of Bankman-Fried’s inner circle have responded with requests for information. The filing stated 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 with the information sharing.
After filing for bankruptcy, FTX and its debtors have been working to locate and secure assets to provide some semblance of liability and preserve the value of the stakeholders’ assets. But, as Cointelegraph previously reported, FTX’s original management had poor record-keeping and security controls, which has exacerbated recovery efforts.
The filing also takes aim at the former CEO of FTX, citing public promises to “help clients” and “explain what happened” on social media as hot air given his reluctance to voluntarily assist in bankruptcy proceedings.
“However, despite these statements, Mr. Samuel Bankman-Fried has not voluntarily responded to or complied with the Requests. As a result, a court authorized subpoena is necessary.”
Bankman-Fried is not the only FTX member who has not forced to request cooperation. Former FTX group CTO Gary Wang and Alameda Research CEO Caroline Ellison declined requests for information, while Barbara Fried had “ignored” the requests entirely.
FTX group co-founders Nishad Singh and Gabriel Bankman-Fried have to date provided no “significant commitment” or response to assist with the ongoing bankruptcy proceedings.
The subpoena seeking more information from Bankman-Fried and its advisers is touted to help recover ‘substantial additional equity assets’ that were transferred prior to FTX’s collapse.
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 bankruptcy proceedings continue, FTX and affected parties have requested subpoenas to obtain information and documents from close relatives of former CEO Sam Bankman-Fried.
