FTX’s lawyers are seeking approval from the US bankruptcy court to issue a subpoena to Sam Bankman-Fried (SBF), his parents Joseph Bankman and Barbara Fried, his brother. The subpoena will also extend to the top executives who worked at the collapsed exchange.
According to the court document, SBF’s parents and his brother Gabriel Bankman-Fried happen to be SBF’s advisors, as such, they should be present for questioning, and provide necessary financial documents as to funds obtained by the bankrupt firm. The lawyers are also trying to involve FTX co-founders, Gary Wang, Nishad Singh, Caroline Ellison, and Constance Wang.
Additionally, the court filing also requested permission for the lawyers to ask personal questions from SBF’s family. There is also a need for any information and documents regarding FTX assets and mode of operations as well as personal assets of FTX insiders, as this will help the lawyers recover any assets or money that the embattled CEO may have given out inappropriately.
However the case may be, FTX lawyers need approval from John Dorsey, US Bankruptcy judge before they send subpoenas to Sam and his family.
Prosecutors Seek Information on FTX’s Operations
Despite the fact that some undisclosed insiders have been assisting with vital information to help in the recovery of FTX assets, the lawyers claim they still need in-depth information. As such, the lawyers have employed a private detector to help investigate the financial department of all the firms involved in the case.
Although representatives for FTX and its affiliated companies frowned at the lawyer’s decision as they noted that a private examiner will duplicate their investigative efforts – causing the companies to lose millions of dollars – thereby reducing the assets they have to pay back to investors and customers.
Recall that early this year, the former president of FTX.US, Brett Harrison said he would share information about the insolvent company when the need arises. While there are still speculations on Harrison’s involvement regarding the collapse of FTX, two former co-workers and executives of Sam’s empire, Caroline Ellison and Gary Wang have pleaded guilty to committing fraud in the defunct exchange.
In contrast to this move, the 30-year-old entrepreneur has maintained that he did not steal users’ funds as he makes his first statement since the arrest following the demise of his exchange.
