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.