SBF’s mother, Caroline Ellison, not cooperating with bankruptcy investigation: lawyers

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SBF, his mother, brother and top executives of his crypto empire are not cooperating in FTX’s bankruptcy case, according to a recent court filing. FTX attorneys said several key insiders either failed to respond or refused to provide requested information regarding the collapsed exchange. But talks with Bankman-Fried’s father and another FTX executive progressed, according to the filing. LoadingSomething is being loaded.

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Sam Bankman-Fried’s mother, brother and former executives of his empire have not cooperated with the investigation into FTX’s finances, according to the failing crypto exchange’s team of lawyers.

Lawyers have worked tirelessly to locate and recover assets from FTX since the crypto exchange declared bankruptcy in November, according to a court filing Wednesday. Now they intended to subpoena Sam Bankman-Fried, his family and former lieutenants.

While some of them responded to letters sent by FTX attorneys requesting more information, none of them voluntarily provided the requested documents or information, according to the filing.

In particular, former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang refused to give FTX attorneys the requested information.

Although not cooperating in FTX’s bankruptcy case, Ellison and Wang agreed to cooperate with prosecutors in their criminal case against Bankman-Fried after pleading guilty to fraud. Bankman-Fried pleaded not guilty to fraud charges.

Former FTX engineering director Nishad Singh did not respond to requests for information from bankruptcy lawyers, although the 27-year-old crypto director was reportedly one of the few people who knew. that FTX was misusing client funds.

FTX attorneys also said they were unable to get a “meaningful commitment or response” from their brother Gabriel Bankman-Fried, while mother Barbara Fried “completely ignored the requests.”

However, talks with Bankman-Fried’s father, Joseph Bankman, and former FTX COO Zhe Wang have progressed, according to the filing.

“Some insiders are currently cooperating with debtors to provide important information. But others are not, and therefore the authorization to issue subpoenas to those with the missing information is critical to debtors’ recovery efforts and of the committee,” the lawyers said, adding that there were still “key questions” about FTX’s finances and transactions that needed to be answered.

So far, liquidators have recovered $5 billion in liquid assets, but locating the rest of the money could take months, Ray warned, given the exchange had virtually no record keeping.

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