FTX Group named a slate of new independent directors to oversee the collapsed crypto empire and is speaking with the US Attorney’s Office and ‘dozens’ of US and international regulatory agencies, according to new bankruptcy court papers.
(Bloomberg) — FTX Group named a slate of new independent directors to oversee the collapsed crypto empire and is speaking with the US Attorney’s Office and ‘dozens’ of US and international regulatory agencies, according to new bankruptcy court papers.
John J. Ray III, who took the reins from Sam Bankman-Fried on Friday, appointed the new directors to ensure proper corporate governance during FTX’s bankruptcy, lawyers for the company wrote. Former US District Court Judge Joseph J. Farnan Jr. will serve as lead independent director, overseeing FTX Trading Ltd.
“Questions arose about Mr. Bankman-Fried’s leadership and the handling of FTX’s complex array of assets and businesses under his direction,” lawyers for the crypto company wrote. FTX plunged into bankruptcy court after facing “a severe liquidity crisis that necessitated the filing of these cases on an emergency basis.”
The moves were disclosed in some of the first court documents to hit FTX’s bankruptcy docket since the company and more than 100 related entities filed for Chapter 11 protection on Nov. 11. The filings show lawyers from Sullivan & Cromwell and advisers with Alvarez & Marsal are working to untangle the situation, which may involve more than a million creditors.
In the last three days, FTX representatives have been in contact with authorities that also include the US Securities and Exchange Commission and the Commodity Futures Trading Commission, according to the filing.
Other independent directors appointed include:
- Matthew A. Doheny at FTX Trading Ltd.
- Mitchell I. Sonkin at West Realm Shires Inc.
- Matthew R. Rosenberg at Alameda Research LLC
- Rishi Jain at Clifton Bay Investments LLC
(Updates headline and first paragraph to include discussions with regulators.)
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