The bankruptcy proceedings of the FTX crypto exchange saw yet another twist after fresh subpoenas were served to the company’s insiders.
The latest orders of the bankruptcy court have demanded a range of documents related to the activities of the crypto exchange.
The subpoenas
These subpoenas were delivered to the co-founder of FTX, Sam Bankman-Fried, the former CTO of FTX, Gary Wang, the former CEO of Alameda Research, Caroline Ellison, and the FTX Digital Market’s former co-CEO, Nishad Singh.
On Tuesday, court documents that were filed in Delaware’s US Bankruptcy Court showed that Sam Bankman-Fried’s parents, Joseph and Barbara Bankman-Fried had also been subpoenaed.
On January 25th, the legal team of the FTX crypto exchange had asked for permission to serve these people subpoenas.
They had said that there were some important questions that needed answers and they were related to the transactions and the different aspects of the company’s finances.
A significant amount of information has been demanded in the subpoenas related to the now-defunct crypto exchange and the companies affiliated with it.
These include real estate, digital assets, fiat currency, payments, or other assets that may have come from any entities that were part of the FTX Group, or from employees or executives of any of these firms.
With the exception of Sam Bankman-Fried, all of them have to provide the said information by February 16th. SBF has been given an additional day to provide the documents that are until February 17th.
Suspicious activity
Ellison and SBF have both been specifically told to share information about any and all communications that were received or sent via instant messaging platforms, or personal email accounts.
These refer to communications that may be related to the FTX Group, or any assets that belong to Alameda or the FTX Group.
They have also been told to share information about the potential deal of FTX’s acquisition with Binance last November before the exchange filed for bankruptcy.
The deal in question had fallen through after Changpeng Zhao, the CEO of FTX, had stated that the liquidity issues of the company were beyond their helping ability.
The demands
The legal team is also interested in documents that may be related to transfers or payments made to political parties, political action committees, politicians, and political campaigns.
Sam Bankman-Fried’s father has been told to provide information about actual real estate purchases, as well as those that were contemplated, including the ones in the Bahamas.
As far as Singh is concerned, he has been told to share documents related to the risk management procedures of the FTX Group, along with its automated liquidation systems.
This includes all documents that would help see how these processes were, or were not, adopted in the case of Alameda.
While SBF has opted to plead not guilty to the eight criminal charges that have been filed against him, the same does not apply to Gary Wang and Caroline Ellison.
The two are cooperating with federal prosecutors after admitting to fraud.