FTX Creditor Committee Was Formed To Represent Companies Invested In The Exchange

In the U.S. bankruptcy case of FTX and its connected firms, a committee was formed to represent unsecured creditors and act as the voice of the majority of FTX consumers in court.

According to a court filing, crypto trading company Wintermute Asia PTE. has earned a place on the coveted creditors’ committee for FTX, allowing it to drive decisions concerning the winding up of the collapsed crypto exchange alongside firms from the Caribbean, Hong Kong, and the United States.

The committee’s establishment, which is intended to represent everyone who has money invested in FTX or connected firms but has not been given security for what FTX owes them, will allow the bankruptcy procedures to proceed.

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.

The Department of Justice has appointed Octopus Venture Capital, the Gibraltar-based Wincent Investment Fund, and a number of individual investors to represent the possibly million individuals owed money by the Bahamas-based firm’s failure, whose founder Sam Bankman-Fried is currently in a Bahamas prison.

According to the filing, the committee would also include hedge fund Coincident Capital, GGC International, and Hong Kong’s Pulsar Global.

Establishing a creditor committee will allow the lawsuit to move forward since the judge presiding over the case had wished to wait until the committee was constituted and able to voice its opinion before reaching a judgment.

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Harold

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