Hearings that can decide the destiny of FTX, as soon as one of many largest crypto exchanges globally, started Tuesday within the U.S. Chapter Court docket for the District of Delaware.

“We’re right here on an unprecedented matter and I don’t say these phrases flippantly,” James Bromley, a companion at Sullivan & Cromwell and co-head of the agency’s world restructuring observe, mentioned through the listening to. “It is a first-day listening to properly over every week after they had been filed; that in itself is unusual. However what we now have right here […] is a distinct kind of animal.”

Previous to the chapter submitting, FTX was “within the management of a small group of inexperienced and unsophisticated people,” Bromley mentioned. “Sadly, the proof appears to point some or all of them had been compromised.”

The crypto alternate fell from grace earlier this month and filed for Chapter 11 chapter on November 11. On the time, FTX CEO and founder Sam Bankman-Fried resigned from his function, and Enron turnaround veteran John J. Ray III was appointed as the brand new CEO. Ray attended the listening to on Tuesday, together with greater than 1,100 individuals who joined the listening to by a Zoom assembly hyperlink and YouTube streaming.

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