FTX's new leadership cooperating with law enforcement, regulators

Quick Take

  • The collapsed crypto exchange’s lawyers said its new leadership is cooperating with law enforcement and regulators in the U.S. and elsewhere. 
  • The company’s current CEO is also weighing demands from congressional committees to appear before them. 

The current corporate leadership of FTX and its associated companies are cooperating with investigators for the U.S. government and regulators, a lawyer representing the troubled firm said in an inaugural bankruptcy hearing today.

“We are also in constant communication with the U.S. Department of Justice,” including the Southern District of New York’s Cyber Crimes Unit, and “in communication constantly with the SEC and CFTC,” said James Bromley, a partner at Sullivan and Cromwell and co-counsel representing the company in the U.S.

New FTX CEO John Ray III and the rest of the exchange’s new leadership are coordinating with “the U.S. government and the various regulators around the world who have taken a very keen interest in this situation,” Bromley continued.

Bromley added: “We have received requests, I would say some might say demands, from the U.S. Congress, both from the Senate and the House, to have Mr. Ray appear in December.”

FTX remains under hacking threat, Bromley warned, noting a hack that took place hours after the initial bankruptcy filing, and the firm has taken measures to protect its remaining assets.

A house divided

FTX’s representatives remain unusually at odds with former CEO Sam Bankman-Fried and other former members of FTX leadership, a disagreement that appears to involve the Bahamian government.

Bankman-Fried told a Vox reporter earlier this month that he regretted filing for bankruptcy. The lawyers now representing the company asked for an emergency motion from a federal judge to place FTX Digital Markets, the Bahamas branch of FTX’s corporate empire and where much of the company’s operations took place.

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