By Alicia Maher
In a court document, collapsed cryptocurrency trading platform FTX disclosed that it had selected five new independent non-executive directors for each of its primary firms, including Alameda research. The company also stated that it was in communication with several financial authorities.
American Authorities Commence Investigations
After stating on Saturday that it has noticed “fraudulent activity on its platform.” FTX has now verified that the company was the target of a cyber assault on November 11. and that it had reacted to the incident.
According to a source who is familiar with the investigations. The total collapse of FTX, which was once a favourite of the cryptocurrency industry and had a valuation of $35 billion as of January. It prompted investigations by the American Justice Department, the SEC, and the CFTC.
FTX said in a court statement that it has communicated with the United States Attorney’s Office, the SEC, and the CFTC. Including dozens of other federal, state, and foreign regulatory bodies over the last three days and nights.
According to the petition, attorneys for the business said that FTX had chosen five new directors to maintain good corporate governance throughout the bankruptcy proceedings. As a result, Joseph Farnan, a former judge on a district court in the United States, and Doheny Matthew will be in charge of FTX Trading.
According to the filing, Matthew Rosenberg, Mitchell Sonkin, and Rishi Jain have been appointed to the position of director of Alameda Research, West Realm Shires, and Clifton Bay Investments, respectively. After frantic customers withdrew $5 billion from the system within 72 hours, competitor Binance abandoned a rescue offer. FTX declared bankruptcy on Friday, making it one of the most high-profile crypto blowups.
John J. Ray III Names New Directors
According to documents written by attorneys for the business, John J. Ray III took over leadership responsibilities from Fried Bankman on Friday. He named the new directors in order to maintain effective corporate governance throughout FTX’s bankruptcy proceedings. In addition, Joseph J. Farnan, a former judge on the District Court of the United States, will take up the role of lead independent director of FTX Trading Ltd.
According to a statement written by the cryptocurrency firm’s legal representatives. “Questions developed concerning Mr. Bankman-leadership Fried’s and the administration of FTX’s wide variety of assets and enterprises under his control.” After experiencing “a significant financial issue that compelled the submission of these lawsuits on an emergency.” FTX was forced to submit their business to the bankruptcy court’s jurisdiction.
Some of the initial bankruptcy paperwork filed by FTX and more than a hundred affiliated corporations on November 11 revealed the changes. According to the documents, legal representatives at Sullivan & Cromwell, including financial consultants from Alvarez & Marsal, are attempting to clarify the issue, which may include more than one million creditors.