FTX’s Legal Campaign for Asset Recovery
The bankrupt cryptocurrency exchange FTX, led by CEO John Ray III, is taking aggressive legal action to regain control and recover assets as it seeks financial restitution. Founder Sam Bankman-Fried, who could face up to 114 years in prison if convicted, has handed over the reins to Ray while FTX pursues its asset recovery plan.
Escalation of FTX’s Bankruptcy Battle
In a recent filing with the US Bankruptcy Court for the District of Delaware, FTX has issued a subpoena to the artificial intelligence (AI) firm Center for AI Safety (CAIS) demanding accounting records and information related to a $6.5 million investment. The motion highlights that FTX is operating under Chapter 11 bankruptcy protection and mentions the appointment of an Official Committee of Unsecured Creditors by the US Trustee.
Seeking Answers from Debtors
The filing reveals that despite attempts to engage in a cooperative dialogue, CAIS has rejected voluntary requests for accounting and failed to respond to formal correspondence. FTX has requested relevant documents and information related to payments, agreements, communications, and other details in order to understand the debtors’ financial landscape.
Hot Take: FTT Token Trading at $1.22
The native token of FTX, FTT, is currently trading at $1.22. This marks a return to the $1 level for the first time since November 2022. Although there has been a decline of over 5% in the past 24 hours, the token has shown significant gains over the past seven days with a 17% upward trend. However, when considering the one-year timeframe, the token’s value has decreased by more than 95%.
Featured image from Shutterstock, chart from TradingView.com
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