C Street Advisory Group
FTX’s Fall Into Bankruptcy Comes Swiftly Following Massive Withdrawal Requests
Our CEO Jon Henes comments on the FTX fall into bankruptcy to The Wall Street Journal
November 11, 2022 / The Wall Street Journal- FTX’s fall into bankruptcy with a chapter 11 filing that offered few details about its creditors and assets indicates a rush by the cryptocurrency platform to seek legal protection shortly after it had disclosed a huge financing gap.
FTX’s bankruptcy filing will put independent managers in charge and give them the power to investigate and potentially recover funds from founder Sam Bankman-Fried, who in recent days admitted to investors that customer funds were used for proprietary trading. Mr. Bankman-Fried also told investors that FTX needed funding to cover a shortfall of up to $8 billion.
“This is like a freefall on steroids,” said Jon Henes, a former restructuring lawyer who is now chief executive of strategic advisory firm C Street Advisory Group.