FTX's bankruptcy hearing scheduled for Thursday has a key agenda outlined
Date: 2023-08-22 Author: Karina Ziganova Categories: BUSINESS, IN WORLD
FTX Trading Ltd filed a subpoena for its next bankruptcy hearing on August 23 before Judge John T. Dorsey of the United States Bankruptcy Court for the District of Delaware.
Thursday, August 23, FTX bankruptcy hearing.
The hearing will cover several issues related to the FTX Chapter 11 bankruptcy case, which was filed on November 11, 2022 following the catastrophic collapse of the cryptocurrency exchange. FTX, its affiliates and founder Sam Bankman-Fried are facing allegations of fraud and misuse of customer funds.
Items listed on the agenda include an update on the bankruptcy case, a motion to establish procedures for settling legal claims related to the downfall of FTX, and an update on the status of several adversarial proceedings that have been filed against FTX insiders such as Bankman-Freed.
The agenda lists 15 issues, 9 of which were resolved by court orders issued on August 18 and no longer require a hearing. Six issues remain to be resolved, including the following request for the establishment of settlement procedures and updating of cases;
1. The court will receive an update on the progress of the FTX bankruptcy case.
2. FTX wants to approve procedures for settling lawsuits related to its collapse, objected to the US trustee.
3. Update on FTX's lawsuit against FTX Digital Markets and former executives.
4. Update on FTX's lawsuit against former Rocket investors, Internet Capital Partners and others.
5. Update on FTX lawsuit against former executives Michael Giles and others.
6. FTX and the committee of creditors are seeking approval to receive documents from Silicon Valley Accountants, Silvergate Bank, and Evolve Bank. Banks object.
U.S. Trustee Objections.
In addition, the US Trustee's office filed objections to a motion for settlement procedures, which argues that the proposal lacks appropriate oversight mechanisms and should not be approved. FTX filed a response defending the procedures necessary to effectively resolve lawsuits arising from its collapse.
In addition to the disputed settlement petition, the court will receive a general update on the FTX bankruptcy and related adversarial proceedings. FTX and its creditors have sued many former executives, investors and partners in a bid 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 via a registered Zoom link.
The FTX case is being closely watched by the crypto industry and government regulators looking to unravel one of the biggest frauds in corporate history. The outcome of a proceeding like the Aug. 23 hearing could determine the recovery of creditors and whether anyone will be held legally liable.
