FTX bankruptcy hearing set for Thursday outlines key agenda

FTX Trading Ltd has filed an docket for the adjacent bankruptcy proceeding connected Aug. 23 earlier Judge John T. Dorsey of the U.S. Bankruptcy Court for the District of Delaware.

Thursday, Aug. 23, FTX bankruptcy hearing.

The proceeding volition screen respective matters related to FTX’s Chapter 11 bankruptcy case, which was filed connected Nov. 11, 2022, aft the catastrophic illness of the cryptocurrency exchange. FTX, its related companies, and laminitis Sam Bankman-Fried are facing allegations of fraud and misuse of lawsuit funds.

Among the matters listed connected the docket are updates connected the bankruptcy case, a question to found procedures for settling litigation claims related to the downfall of FTX, and presumption updates connected respective adversary proceedings that person been filed against FTX insiders similar Bankman-Fried.

The docket lists 15 full matters, 9 of which person been resolved done tribunal orders entered connected Aug. 18 and nary longer necessitate a hearing. Six issues stay to beryllium addressed, including the petition to found colony procedures and lawsuit updates, listed below;

1. The tribunal volition get an update connected wherever things basal successful FTX’s bankruptcy case.
2. FTX wants support of procedures for settling lawsuits related to its collapse—the U.S. Trustee objects.
3. A presumption update connected FTX’s suit against FTX Digital Markets and erstwhile executives.
4. A presumption update connected FTX’s suit against erstwhile investors Rocket Internet Capital Partners and others.
5. A presumption update connected FTX’s suit against erstwhile executives Michael Giles and others.
6. FTX and the creditors’ committee privation support 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 bureau has filed objections to the colony procedures motion, which argues the connection lacks due oversight mechanisms and should not beryllium approved. FTX has filed a reply defending the procedures arsenic indispensable to resoluteness ineligible claims arising from its illness efficiently.

In summation to the contested colony motion, the tribunal volition person a wide update connected the FTX bankruptcy and related adversary proceedings. Numerous erstwhile executives, investors, and partners person been sued by FTX and its creditors, seeking to retrieve assets.

The proceeding volition instrumentality spot successful Judge Dorsey’s courtroom successful Wilmington, with information restrictions owed to COVID-19 protocols. Members of the nationalist tin perceive to the proceedings done a registered Zoom link.

The FTX lawsuit is being intimately watched successful the crypto manufacture and by authorities regulators seeking to untangle 1 of the largest frauds successful firm history. The result of proceedings similar the Aug. 23 proceeding could find creditor recoveries and whether anyone is held legally accountable.

The station FTX bankruptcy proceeding acceptable for Thursday outlines cardinal agenda appeared archetypal connected CryptoSlate.