Tag: FTX

Some Common Sense in the FTX Bankruptcy: Hallelujah | John Reed Stark, LinkedIn

 A federal appeals court on Friday ordered the appointment of an independent bankruptcy examiner to investigate the Nov. 2022 collapse of FTX. Reversing a lower ruling, the 3rd U.S. Circuit Court of Appeals in Philadelphia agreed with a government watchdog that appointing an examiner was mandatory under the U.S. Bankruptcy Code. The independence of an examiner is relevant, the circuit…

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Bankman-Fried’s FTX to get bankruptcy examiner to probe collapse – US appeals court | Reuters

A federal appeals court on Friday ordered the appointment of an independent bankruptcy examiner to investigate the Nov. 2022 collapse of FTX, the cryptocurrency exchange once led by the convicted Sam Bankman-Fried. Reversing a lower ruling, the 3rd U.S. Circuit Court of Appeals in Philadelphia agreed with a government watchdog that appointing an examiner was mandatory under the U.S. Bankruptcy…

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Bankman-Fried Hires Trevor Milton Lawyer Ahead of Sentencing

FTX founder Sam Bankman-Fried, who faces decades in prison after being convicted of masterminding a multibillion dollar fraud, has brought in a new lawyer who helped secure a lenient sentence for another high-profile white collar defendant. Bankman-Fried hired Marc Mukasey, a former federal prosecutor with a wealth of experience and connections in the New York legal community. He represented Nikola…

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The Hot New Market in Crypto? Trading FTX’s Carcass. – The New York Times

After the FTX cryptocurrency exchange filed for bankruptcy last year, Thomas Braziel, an investor who specializes in collapsed businesses, started brokering an unusual kind of transaction: a market to profit from FTX’s downfall. Mr. Braziel put one of his clients in touch with a large financial firm that had lost nearly $100 million when FTX went under. Last December, the…

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SBF’s Lawyer Says Client Was ‘Worst’ Witness He Has Ever Seen – Bloomberg

Sam Bankman-Fried went off-script when he took the stand. That’s the view of David Mills, the behind-the-scenes architect of the FTX co-founder’s defense at trial. The once high-flying crypto mogul repeatedly veered away from his lawyers’ strategy, including on how to handle prosecutors’ tough questions on cross-examination. “He may be at the very top of the list as the worst…

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After 1 Year, FTX Bankruptcy Is More Lucrative for Law Firms Than Enron and Lehman | Law.com

For debtor’s counsel, notoriously lucrative bankruptcies have included Enron, Lehman Brothers and General Motors. After defaulting on nearly a trillion dollars in combined debt, the trio generated hundreds of millions of dollars in fee revenue for law firms. But for law firms like Sullivan & Cromwell and Quinn Emanuel Urquhart & Sullivan, the bankruptcy of cryptocurrency trading firm-turned-accounting fraud FTX…

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MLB, Formula 1 Face Fraud Suits for Promoting FTX Cryptocurrency – Bloomberg

FTX investors suing the cryptocurrency exchange’s celebrity promoters for allegedly helping to facilitate an $11 billion fraud have some new targets, including Major League Baseball, Formula 1 racing and Mercedes-Benz Group AG’s racing team. Investors’ lawyers sued MLB – the first major sports league to sign a promotional deal with FTX in 2021 – and the other entities in federal…

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Sam Bankman-Fried’s Life Behind Bars: Crypto Tips and Paying With Fish – WSJ

Sam Bankman-Fried, convicted of fraud in the meltdown of FTX, has traded in crypto for a new currency: mackerel. The fallen crypto king, who is cooling his heels at Brooklyn’s Metropolitan Detention Center while he awaits sentencing for seven felony offenses, has learned the fundamentals of prison economics while sharing a dormitory with a former Honduran president awaiting criminal trial…

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FTX Adds a Complex Chapter to the Financial-Fraud History Books – Bloomberg

He added that the speed at which Bankman-Fried’s rags-to-riches-to-rags tale unfolded makes the case difficult to compare with fraudsters like Madoff, the financier who was sentenced to 150 years in prison in 2009 for stealing $65 billion from thousands of investors. Madoff executed his Ponzi scheme over the course of more than 20 years. Holmes, who was sentenced to prison…

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