FTX Makes First Substantive Bankruptcy Filing
After making its initial bankruptcy filing on November 11, 2022, the failed crypto platform FTX Trading LTD filed a motion before the United States Bankruptcy Court for the District of Delaware on November 14, 2022. The motion asks the Court to modify certain creditor list flings and to authorize FTX to serve process to certain parties by email. In addition, we learned the following important facts.
November 17, 2022 Declaration of John J. Ray
Individuals Appointed to Operate FTX
On Friday, November 11, 2022, the disgraced CEO of FTX.com, Sam Bankman-Fried resigned and the following new independent directors were appointed:
|John J. Ray||CEO||Former Enron Attorney|
|Hon. Joseph J. Farnan, Jr.||Lead Independent Director||Farnan LLP|
|Matthew A. Doheny||Independent Director||FTX Trading Ltd.|
|Mitchell I. Sonkin||Independent Director||West Realm Shires Inc.|
|Matthew R. Rosenberg||Independent Director||Alameda Research LLC|
|Rishi Jain||Independent Director||Clifton Bay Investments LLC|
More than One Million Individual Creditors
According to its November 14, 2022 filing, FTX believes, “there are over one hundred thousand creditors in these Chapter 11 Cases. In fact, there could be more than one million creditors in these Chapter 11 Cases…” The Federal Bankruptcy rules require notice to be physically served to all creditors at their address. Here, FTX is asking the Court to relax those rules to allow for e-mail service.