What to expect from FTX’s second bankruptcy hearing today; LedgerX sale, doxing creditors, custody of funds

It’s been a long week for the FTX empire as founder Sam Bankman-Fried is jailed in the Bahamas and put on trial in the US for money laundering and wire fraud charges from the SEC, CFTC, and SDNY.

Collapsed cryptocurrency exchange FTX is set to hold a second hearing in Delaware bankruptcy court on Dec. 16, where the judge has ruled on requests to redact confidential information of FTX customers.

At FTX’s first bankruptcy hearing on November 22nd, FTX CEO John Ray said FTX was a total failure because it was grossly mismanaged. The exchange was managed by a small group of inexperienced and unsophisticated individuals.

FTX debtors have requested that the personal information of investors and corporate clients be redacted for privacy reasons. The U.S. Trustee opposed the request on the grounds of the need for transparency throughout the bankruptcy process.

Decision to expose FTX creditors

According to the Dec. 16th bankruptcy court agenda, FTX’s request to redact certain confidential information of its customers will be deliberated today.

However, part of the agenda states that FTX debtors are no longer asking for their records to remain sealed.

Objections to requests by Bloomberg, the Financial Times, the New York Times and Dow Jones to release all personal information of FTX creditors will also be filed with the court.

The agenda added that the decision to approve BitGo as custodian of FTX’s assets has been postponed to January 11, 2023.

Furthermore, the court on purpose Motion to sell four FTX businesses – FTX Japan, FTX Europe, Embed and Ledger X – to increase liquidity and perfect customer integrity.

Court Appoints Creditors Committee

Meanwhile, the court approved FTX’s appointment Unsecured Creditors Committee. The Commission will be actively involved in the bankruptcy process to represent the interests of FTX creditors.

The appointed members of the Creditors Committee are:

• Zachary Bruch
• Coincident Capital International
• GGC International (Bermuda branch of Genesis)
• Octopus information
• pulsar global
• Larry Chen
• Akena Amoros Romero
• Wincent Investment Fund PCC
• Wintermute Asia PTE

FTX’s second bankruptcy hearing is scheduled to be held via Zoom on December 16, 2022 at 10:00 am.