Insolvency negotiation from FTX: The highlights

So much for winning a "legal dispute against Delaware".

The FTX lawyers agreed this week that the Bermuda bankruptcy in Delaware will be negotiated, not in New York, where it was originally submitted. In other words, the district fight ended with a ceasefire.

Unfortunately, Delaware is also a notorious refuge for corporate secrets. A counter-argument against the criticism of the Blue Hen State is that the US Ministry of Justice, unlike the Bahamas or the quays' islands, can penetrate its limits.

But for the time being, the court has stood on the FTX representative on the U.Thestrian Händer of the Doj and will keep the biggest creditors in the crypto exchange anonymously. The confidentiality will continue at least up to a recruitment on the evidence on December 16 - and the list could remain permanently blackened. The arguments that FTX has brought for anonymity earn a separate contribution, but at the moment we will only raise an eyebrow.

na and act We learn apart from the laying of the NY/Bahamas case according to Delaware? At first we learned that Delaware is not necessarily prepared for hundreds of zoom participants, many of whom are otherwise extremely online. Officials relied on the honor system to stop callers from turning on their cameras and microphones, which meant that in the only 10-minute break of the court, a few guys demanded their money back and at least one lifted the silent circuit to transmit music. When he was asked to report, a participant asked who the "Boomer" was.

We also learned that the new CEO and the team consider some former employees to be “compromised”. It is not yet clear what you mean by it, but we feel that we will find out!

The team (and its new board) also want to sell some companies controlled by FTX as soon as possible. "We believe you honor that we will try to sell certain companies that we understand that they are self -sufficient and robust at least today and have aroused the interest of others on the market," he said James Bromley, a lawyer at Sullivan & Cromwell, who represents FTX's new management.

We also learned that Sam Bankman-Fried not only advised himself with his father, a professor of Stanford Law School, but also with his father's colleague, David Mills, the "classes in criminal law and economic crime."

More facts about the customer base, the barreserves and the FTX employee number came out, with some practical diagrams to boot:

1) Customer locations ”

Apart from traditional tax havens, Great Britain is connected to China for the highest proportion of FTX customers. The Kaiman Islands and the Jungfern Islands have larger shares in customers, but given their status as a tax paradise, who knows where the final owners of these accounts spend their time.

Congratulations London, you beat Singapore!

2) Employees

like James Bromley from Sullivan & Cromwell told the judge, we also learned that “approximately 260” employees remain in the company.

Below you will find the FTX employee locations from the end of October. The "debtor company" diagram on the left contains the number of employees of companies that have made an application for Chapter 11. The cake diagram on the right contains these companies as well as the subsidiaries in Australia and on the Bahamas.

3) Investments

We also have a selection of companies supported by FTX. Sequoia is on the list, as our FT colleagues reported, together with a number of research companies for artificial intelligence, IEX and. . . Developer of the video game StoryBook Brawl? (You can find a list of investors in our Tombstonft.)

4) Liquidity

Finally, we have a nice little summary of the bar agents that the new management team has so far found:

Alameda has by far the largest barrel reserve, since Fiat is required to create markets for Degens Yoloing in Dogecoin. Note that these amounts do not reflect any costs, except those that are absolutely necessary for maintaining the company's company in the next five weeks. Everything else is paused by the bankruptcy.

The complete exhibits can be found on Pacer or here.