FTX Insiders Served Subpoenas Over Fallen Crypto Exchange Financial Trading
by Arthur · February 15, 2023
The FTX bankruptcy proceedings have taken a new twist after the company’s insiders were all hit by new subpoenas.
The bankruptcy court has ordered Sam Bankman-Fried, former Alameda CEO Caroline Ellison, former FTX CTO Gary Wang, and former co-CEO of FTX Digital Markets Nishad Singh to produce a number of documents related to the exchange’s activities.
Bankman-Fried’s father Joseph Bankman and mother Barbara Fried are also among those subpoenaed, according to court documents filed Tuesday in the U.S. Bankruptcy Court for the District of Delaware.
FTX’s legal team requested permission to serve subpoenas on the group on Jan. 25, saying “key questions remain … regarding a number of aspects of the debtors’ finances and transactions.”
The subpoenas demand a significant amount of information about the now-defunct crypto exchange and its affiliates, including “any payment, digital assets, property, fiat currency or other assets received from any of the entities of the FTX Group,” or from any director or employee of a unit in the FTX Group.
All but Bankman-Fried must provide the requested information by February 16. The disgraced crypto-founder has until February 17 to submit the relevant documents.
FTX information about suspicious activity is required
Both Bankman-Fried and Ellison have been specifically asked to provide information about all communications sent or received from personal email accounts or instant messaging platforms regarding FTX Group or assets of FTX Group or Alameda.
They are also being asked to produce information about Binance’s move to buy FTX last November, which ultimately fell through after CEO Changpeng Zhao stated that FTX’s liquidity problems were “beyond our control or ability to help.”
FTX’s legal team also wants to see documents related to “any payment or other transfer of value to political campaigns, politicians, political action committees, political parties” and other associated persons.
The court has asked SBF’s father to provide information on “considered, potential or actual purchases of property”, including any property in the Bahamas.
FTX Digital Markets’ Singh has been specifically asked to produce documents related to FTX Group’s risk management and automated liquidation systems, processes and policies, including any documents that might shed light on how they did or did not apply to Alameda.
SBF, which faces eight criminal charges including fraud, money laundering and misappropriation of customer funds, last month pleaded not guilty to the alleged crimes.
Former Alameda CEO Ellison and FTX co-founder Wang, on the other hand, have both admitted fraud and are cooperating with federal prosecutors.
