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Bankruptcy Attorneys Allege the Former CEO of FTX of Undermining the Case

Bankruptcy Attorneys Allege the Former CEO of FTX of Undermining the Case

Sam Bankman-Fried’s “constant and disruptive tweeting” is hurting attempts to rebuild his failing company, according to US attorneys for the insolvent crypto platform FTX in a court filing.

Further, tweeting seems to be geared at shifting assets away from the jurisdiction of a US court and toward one in the Bahamas, according to the attorneys. Under the leadership of a new CEO, FTX requested that a federal court in Delaware move a rival bankruptcy action filed in New York by Bahamas liquidators to Delaware.

Earlier, Sam Bankman-Fried admitted in a tweet that he miscalculated the FTX’s leverage levels. It was $13 billion, not $5 billion. Further, the collapse of FTX will be investigated by House and Senate committees next month.

As the contagion spreads, more cryptocurrency lenders are being hit. According to persons familiar with the situation, BlockFi Inc. is prepared to file for bankruptcy. Moreover, Winklevoss brothers’ cryptocurrency platform, Gemini Trust Co., has halted withdrawals from its lending program. According to TCU, insolvent lender Voyager Digital may look for a new savior in Binance.

Bankman-Fried Tweets his Version of the FTX Collapse Narrative

On Wednesday, Bankman-Fried added 18 more tweets to a rambling thread he began earlier in the week. The postings, released at random intervals. Further, it included blended apologies for his mistakes about what went wrong at the firms he created and oversaw. They are a continuation of a past series of enigmatic postings. “We were overconfident and negligent,” he said

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