FTX bankruptcy hearing set for Thursday outlines key agenda FTX bankruptcy hearing set for Thursday outlines key agenda
FTX bankruptcy case poised for critical updates in upcoming hearing amid allegations of massive fraud.
2 min read
Updated: Aug. 22, 2023 at 9:20 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
FTX Trading Ltd has filed an agenda for the next bankruptcy hearing on Aug. 23 before Judge John T. Dorsey of the U.S. Bankruptcy Court for the District of Delaware.
Thursday, Aug. 23, FTX bankruptcy hearing.
The hearing will cover several matters related to FTX’s Chapter 11 bankruptcy case, which was filed on Nov. 11, 2022, after the catastrophic collapse of the cryptocurrency exchange. FTX, its related companies, and founder Sam Bankman-Fried are facing allegations of fraud and misuse of customer funds.
Among the matters listed on the agenda are updates on the bankruptcy case, a motion to establish procedures for settling litigation claims related to the downfall of FTX, and status updates on several adversary proceedings that have been filed against FTX insiders like Bankman-Fried.
The agenda lists 15 total matters, 9 of which have been resolved through court orders entered on Aug. 18 and no longer require a hearing. Six issues remain to be addressed, including the request to establish settlement procedures and case updates, listed below;
- The court will get an update on where things stand in FTX’s bankruptcy case.
- FTX wants approval of procedures for settling lawsuits related to its collapse—the U.S. Trustee objects.
- A status update on FTX’s lawsuit against FTX Digital Markets and former executives.
- A status update on FTX’s lawsuit against former investors Rocket Internet Capital Partners and others.
- A status update on FTX’s lawsuit against former executives Michael Giles and others.
- FTX and the creditors’ committee want approval to get documents from Silicon Valley Accountants, Silvergate Bank, and Evolve Bank. The banks object.
U.S. Trustee objections.
Further, the U.S. Trustee’s office has filed objections to the settlement procedures motion, which argues the proposal lacks appropriate oversight mechanisms and should not be approved. FTX has filed a reply defending the procedures as necessary to resolve legal claims arising from its collapse efficiently.
In addition to the contested settlement motion, the court will receive a general update on the FTX bankruptcy and related adversary proceedings. Numerous former executives, investors, and partners have been sued by FTX and its creditors, seeking to recover assets.
The hearing will take place in Judge Dorsey’s courtroom in Wilmington, with participation restrictions due to COVID-19 protocols. Members of the public can listen to the proceedings through a registered Zoom link.
The FTX case is being closely watched in the crypto industry and by government regulators seeking to untangle one of the largest frauds in corporate history. The outcome of proceedings like the Aug. 23 hearing could determine creditor recoveries and whether anyone is held legally accountable.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Silvergate
Silvergate is a Federal Reserve member bank and the leading provider of innovative financial infrastructure solutions and services for the growing digital currency industry, based in La Jolla, California.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.