FTX Lawyers Attempts To Warn SBF About Bankruptcy
According to the New York Times, Sam Bankman-Fried ignored bankruptcy warnings in the hope of raising funds.
Following the disclosure of the FTX liquidity problem, the attention was squarely on whether any investors would step forward to salvage the firm. Meanwhile, FTX lawyers are reportedly negotiating to take company control away from SBF, paving the way for immediate bankruptcy.
According to the article, the attorneys’ attempts to seize control of SBF were futile. Although the FTX founder finally stepped down as CEO, it was possible that it was already too late. Retail investors lost billions of dollars in investments in the subsequent crypto meltdown.
Ryne Miller, a top FTX lawyer, wrote in an email to Bankman-Fried and other staff on November 10:
“The exchanges must be halted immediately. The founding team is not currently in a cooperative posture.”
Bankman-Fried finally caved, stepping down as the company CEO and enabling the company to declare bankruptcy.
Meanwhile, the crypto exchange announced that it has begun paying salaries and benefits to employees globally. According to CEO John Ray, the FTX Group has resumed regular course cash payments of salaries and benefits to workers worldwide.
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