Committee to represent creditors formed in FTX bankruptcy case

Quick Take

  • The formation of an unsecured creditors committee is an important next step in the bankruptcy process of failed crypto giant FTX, its closely-linked hedge fund Alameda Research, and over 100 other affiliated companies. 
  • The bankruptcy judge presiding over the case will continue to hear arguments around public disclosure of customers in court and whether to grant continuous computer access to lawyers hired to liquidate the Bahamian part of Sam Bankman-Fried’s diminished corporate empire. 

A committee to represent unsecured creditors and serve as the voice for most FTX customers in court was established in the U.S. bankruptcy case of FTX and its affiliated companies.

The formation of the committee, meant to represent anyone who had money in FTX or affiliated companies but was not given collateral for what FTX owes them, will allow the bankruptcy proceedings to move forward. Representatives for the U.S. Trustee, an office within the Justice Department that represents the U.S. government in bankruptcy proceedings and helps formalize such committees, said earlier this week that forming this one had been difficult due to the highly international nature of FTX’s customer base.

While U.S. government lawyers have pushed for more transparency in identifying large businesses that FTX owes money to, the collapsed exchange, under its new leadership, has argued to keep that information under seal on the grounds that its client list is a valuable company asset that could be sold to help recoup money. The formation of a creditor committee will allow the matter to move to a conclusion, as the judge presiding over the case had wanted to wait until the committee was formed and able to express its view before making a decision on the matter.

Friction also remains over the fate of the Bahamas arm of FTX's group of companies, FTX Digital Markets. Former FTX CEO Sam Bankman-Fried put that part of his corporate empire into a separate bankruptcy process, with a different group of lawyers charged with liquidating the company. Lawyers representing the rest of the corporate family, now headed by corporate bankruptcy and restructuring expert John Ray III, have claimed that movement of hundreds of millions of dollars-worth of assets out of accounts controlled by that subsidiary violated U.S. bankruptcy law.


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Members of the unsecured creditor committee include:

  • Zachary Bruch, an individual investor with New York-based representation.

  • Coincident Capital International, Ltd., a cryptocurrency hedge fund whose corporate LinkedIn profile places them in the Cayman Islands.

  • GGC International Ltd., a Bermuda-based firm.

  • Octopus Information Ltd., a British Virgin Islands-based firm.

  • Pulsar Global Ltd., a Hong Kong-based crypto trading firm and market maker.

  • Larry Qian, an individual investor.

  • Acaena Amoros Romero, an individual investor.

  • Wincent Investment Fund PCC Ltd., a Gibraltar-based investment fund.

  • And Wintermute Asia PTE. Ltd., an algorithmic trading firm that appears to have multinational operations but is identified in court documents as Manchester, UK-based.

Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Colin oversees and contributes policy, regulatory, political, and legal coverage for The Block. Before joining The Block he covered congressional economic policy, including fintech legislation, for Bloomberg Industry Group and Politico, with additional stints at the Washington Examiner and American Banker. Colin is an alumnus of Columbia University's Graduate School of Journalism and Sewanee: The University of the South. 


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Christiana Loureiro at
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