Failed Crypto Exchange FTX Might Come Back, Judge Denies SBF’s Request To Use $10 Million Insurance Policy
During a court appearance on Wednesday, lawyers representing FTX stated that the company intends to submit a plan for reorganization in July, which would explore the possibility of reopening the failed cryptocurrency exchange.
Because Bitcoin
April 12, 2023
The Block reported that during a court hearing on Wednesday, FTX hinted at the potential for reopening the failed cryptocurrency exchange by revealing its intention to submit a reorganization plan in July, which could be confirmed in the second quarter of next year. Andy Dietderich of Sullivan & Cromwell, representing FTX, declared that the "dumpster fire is out" and stated that the company currently holds assets worth $7.3 billion. FTX had filed for bankruptcy protection in November following customer withdrawals.
When asked by Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware about the possibility of a restart, Dietderich noted that raising "significant capital" or using estate funds would be required, and there was no clear response given.
The price of the FTT token has shot up over 118% since the news was released!
FTX's former CTO, Gary Wang, who pleaded guilty to criminal charges last year, is providing assistance to FTX's debtors by helping them locate additional assets, according to Dietderich. He referred to former CEO and founder Sam Bankman-Fried, accusing him of repeatedly lying to stakeholders, customers, and creditors to maintain a "digital con game."
Judge stated that there is "no evidence" indicating that Bankman-Fried requires FTX's $10 million insurance policy
It was furthermore reported that Bankman-Fried had his motion to access FTX's $10 million insurance policy to cover his legal expenses denied by a bankruptcy court judge. Bankman-Fried had requested that the stay on FTX's director and officer liability insurance policy be lifted, which would have allowed the insurance providers to assess his claims and potentially reimburse his legal costs. However, the judge, John Dorsey, stated that Bankman-Fried failed to provide evidence or establish cause for his request, and he has the option to come back with evidence at a later time.
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