Forming a committee of unsecured creditors is an important next step in the bankruptcy proceedings of failed crypto giant FTX, its closely affiliated hedge fund Alameda Research and more than 100 other related companies. The bankruptcy judge presiding over the case will continue to hear arguments about client disclosure in court and whether attorneys hired to liquidate the Bahamian portion of Sam Bankman-Fried’s dwindling corporate empire should continue to be allowed computer access.
A committee has been established to represent unsecured creditors and to serve as the voice of the majority of FTX clients in court in the event of bankruptcy of FTX and its affiliates in the United States. The formation of the committee was intended to represent anyone who had money in FTX or its affiliates. Still, no guarantee was given of what FTX owes them will allow the bankruptcy proceedings to proceed. Representative of the U. Trustee, an office within the Department of Justice.
In bankruptcy proceedings and helping to formalize such committees, the government said earlier this week that forming a committee has been difficult due to the highly international nature of FTX’s customer base. While lawyers owe the US government money, the failed exchange, under its new leadership, has argued to keep that information under wraps, citing its customer list as a valuable corporate asset that could be sold to help raise the money to get back. The formation of a creditors’ committee would allow the matter to be closed as the competent judge wanted to await its formation and may express its point of view before deciding on the matter.
Controversy continues over the fate of FTX Digital Markets, the Bahamas arm of the FTX group of companies. With the dissolution of the company. Corporate bankruptcy and restructuring expert John Ray III now leads lawyers representing the rest of the corporate family.
Members of the unsecured creditor committee include:
- Zachary Bruch, an individual investor with New York-based representation.
- Coincident Capital International, Ltd., a cryptocurrency hedge fund whose corporate LinkedIn profile places them in the Cayman Islands.
- GGC International Ltd., a Bermuda-based firm.
- Octopus Information Ltd., a British Virgin Islands-based firm.
- Pulsar Global Ltd. is a Hong Kong-based crypto trading firm and market maker.
- Larry Qian, an individual investor.
- Acaena Amoros Romero, an individual investor.
- Wincent Investment Fund PCC Ltd., a Gibraltar-based investment fund.
- Wintermute Asia PTE. Ltd., an algorithmic trading company with what appear to be global operations, is listed as having its headquarters in Manchester, UK, according to court documents.