The US Dept. of Justice’s Office of the US Trustee has appointed a Committee of Unsecured Creditors to represent FTX account holders and other creditors in the bankruptcy case of the collapsed crypto exchange.
The nine-member committee includes three individual creditors Zachary Bruch, Larry Qian, and Acaena Amoros Romero. The institutions include Genesis affiliate GGC International Ltd, crypto trader Wintermute Asia PTE, Coincident Capital International, Pulsar Global Ltd, Octopus Information Ltd, and Wincent Investment Fund.
The Chapter 11 bankruptcy filing on November 11 revealed that the FTX collapse has left an estimated 1 million creditors facing losses worth billions of dollars. The appointment of Genesis affiliate firm to the committee is unlikely to help Genesis from the liquidity issues it is facing due to FTX contagion.
Also Read: Terra Do Kwon Explains How SBF And Genesis Led Terra-LUNA Crisis
According to a document filed to the Bankruptcy Court of Delaware, new management under CEO John J. Ray III proposes to auction FTX subsidiaries LedgerX, FTX Japan, FTX Europe, and Embed Business.
The assets and funds of these companies remain segregated from FTX, unlike some of the company’s other subsidiaries. The management wants to complete the auction process for the companies in February and March of next year.
Meanwhile, FTX Japan has been asked by the Japanese regulator FSA to suspend operations and work on improvement orders as the subsidiary announced to return customer funds by reopening withdrawals. FTX Europe has also had its license and operations suspended.
However, the filing reveals the sale will benefit creditors and the management has received over 100 bids for the proposed sale of working businesses.
Former CEO Sam Bankman-Fried has filed a new bail application in the Bahamas Supreme Court after Chief Magistrate JoyAnn Ferguson-Pratt on Tuesday rejected the first bail request. The Supreme Court would hear the bail application on January 17.
In fact, SBF has earlier pointed out that he would fight to prevent extradition to the U.S. The FTX founder faces eight charges in the U.S. which includes money laundering, wire fraud, and securities fraud.
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