Le Lézard
Classified in: Business
Subject: BCY

FTX Debtors File Schedules and Statements of Financial Affairs with Bankruptcy Court


Identify Over $3.2 Billion in Transfers to Founders and Key Employees

Forensic Work Continues on Intercompany and Other Transactions

WILMINGTON, Del., March 15, 2023 /PRNewswire/ -- FTX Trading Ltd. (d.b.a. FTX.com), and its affiliated debtors (together, the "FTX Debtors") today filed Schedules of Assets and Liabilities and Statements of Financial Affairs (the "Schedules and SOFAs") for all Debtor entities involved in their Chapter 11 proceedings. The Schedules and SOFAs include disclosure of certain assets and liabilities of the FTX Debtors as of the Petition Date, based on current information.

The Schedules and SOFAs filed describe $3.2 billion in payments and loans to founders, chiefly from Alameda Research, including:

These amounts exclude over $240 million spent to purchase luxury property in the Bahamas, political and charitable donations made directly by the FTX Debtors, and substantial transfers to non-Debtor subsidiaries in the Bahamas and other jurisdictions.  Although some of the property purchased with the proceeds of these transfers is already in the control of the FTX Debtors or governmental authorities with whom the FTX Debtors are cooperating, the amount and timing of eventual monetary recoveries cannot be predicted at this time. The FTX Debtors are investigating causes of action against the recipients of these transfers and their subsequent transferees.

The Schedules and SOFAs are prepared pursuant to Chapter 11 rules and do not conform to generally accepted accounting principles or present a complete picture of the assets and liabilities of the FTX Debtors.  Ongoing efforts by the FTX Debtors are expected to result in the further identification of assets, liabilities and transfers, including a description of intercompany claims among the FTX Debtors and their subsidiaries.  No stakeholder should use the Schedules and SOFAs for purposes of estimating recoveries on claims.

Advisors

The FTX Debtors are represented by Sullivan & Cromwell LLP as legal counsel and are assisted by Alvarez & Marsal North America, LLC as financial advisor, Perella Weinberg Partners LP as investment banker, Quinn Emanuel Urquhart & Sullivan, LLP as special counsel and Landis Rath & Cobb LLP as Delaware counsel. The UCC is represented by Paul Hastings LLP as legal counsel, FTI Consulting as financial advisor, Jefferies LLC as investment banker and Young Conaway Stargatt & Taylor LLP as Delaware counsel.

 

SOURCE FTX


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