FTX and its creditors have filed a subpoena request to recover transferred assets in the US Bankruptcy Court for the District of Delaware.
The filed request seeks written order for Sam Bankman-Fried’s closest advisors to provide information for ongoing investigations.
The bankruptcy proceedings are focused on locating and securing estate assets belonging to FTX and its investors.
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According to the legal document, some of the closest individuals to Bankman-Fried have agreed to provide information. These people are the COO of FTX Trading, Zhe “Constance” Want, and Sam Bankman-Fried’s father, Joseph Bankman.
Aside from Sam Bankman-Fried, former FTX group CTO Gary Wang and Alameda Research CEO Caroline Ellison have declined requests for information. Sam's mother, Barbara Fried, has ignored requests altogether. However, the filing remarked on Sam Bankman-Fried's earlier statement.
Mr. Samuel Bankman-Fried has publicly stated that he “ha<s> a duty to talk to people,” to “explain what happened,” to “do everything <he> can to try and do what’s right,” and to “try and help customers.”
Yet, the FTX group co-founders Nishad Singh and Gabriel Bankman-Fried have not provided any meaningful engagement or response to the ongoing bankruptcy proceedings.
The filing states that FTX’s original management already had poor record-keeping and security measures. Further, this lack of cooperation has made the fund recovery efforts more difficult.
The document states that the subpoenas aim to recover substantial additional estate assets that were transferred prior to the collapse of FTX.
The filing also argues that courts routinely order former executives and advisors to produce information in bankruptcy cases. Therefore, a similar action is expected in the FTX case.
