News

FTX During Bankruptcy Hearing: ‘Substantial’ Assets Stolen Or Missing

FTX Bankruptcy Hearing News: The FTX attorney said during the bankruptcy hearing that a substantial amount of assets were stolen or missing.
Published by
FTX During Bankruptcy Hearing: ‘Substantial’ Assets Stolen Or Missing

FTX Bankruptcy Hearing News: The attorney representing FTX said during the bankruptcy hearing that a substantial amount of assets were stolen or missing. Attorney Bromley also said that unfortunately the FTX debtors were not particularly well run. In his opening remarks, the attorney described the FTX case as ‘unprecedented’. He further said top FTX executives including Sam Bankman-Fried kept unreliable records.

“There was a run on the bank in November, and FTX is controlled by a very small group of people including Sam Bankman-Fried, who kept unreliable records. A substantial amount of assets have either been stolen or are missing.”

Advertisement

Abrupt Collapse

Going forward, the main aim of FTX is to maximize assets to be able to return dues to investors. Bromley said maximization is a core objective, whether it means selling businesses or reorganizing businesses. Speaking about the FTX collapse during the hearing, the attorney said it happened very quickly and was quite shocking. He also described the meltdown as “one of the most abrupt and difficult corporate collapses in the history of corporate America.”

Also Read: FTX Drainer Swapping Ethereum To Bitcoin; Will It Impact ETH Price?

Advertisement

A Fraction Of FTX Employees Remain

Bromley also said that currently around 260 employees remain at the crypto exchange. In this context, the FTX Token (FTT) is trading at extremely low levels compared with October range of $22.50. As of writing, FTT price stands at $1.31, up 2.10% in the last 24 hours, according to price tracking platform CoinMarketCap.

On November 12, the FTX Group announced its decision to go for voluntary chapter 11 bankruptcy proceedings. The decision, FTX said, was aimed at systematically maximizing its assets for the benefit of investors. Along with the announcement came the stepping down of Sam Bankman-Fried from the role of CEO. John Ray has been appointed as the new FTX chief executive officer.

Also Read: Binance Refuses Any Investment to Save Crypto Lender Genesis, Bankruptcy Ahead?

Advertisement

Share
Anvesh Reddy

Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at anvesh@coingape.com or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?

Bitcoin traders are turning their attention to this week’s Federal Open Market Committee (FOMC) meeting.…

October 26, 2025
  • News

White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

White House crypto czar David Sacks has shown his support for Donald Trump's nomination of…

October 25, 2025
  • News

Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role

Crypto firm Ripple has revealed that it is exploring new ways to use XRP within…

October 25, 2025
  • News

Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms

Kyrgyzstan has made a significant move in the adoption of digital finance. It has now…

October 25, 2025
  • News

Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing

Ripple-backed Evernorth's XRP treasury has grown to $1 billion just days after the company announced…

October 25, 2025
  • News

Trump Tariff Tensions Ease as U.S. and China Hold Positive Trade Talks Ahead of Oct 30 Summit

In fresh developments, the United States and China’s trade teams have commenced negotiations on the…

October 25, 2025