FTX Granted Court Approval to Subpoena Founder and Family

FTX Seeks Information on Misappropriated Funds

FTX, a former major player in the cryptocurrency exchange market, has received court approval to issue subpoenas to its founder, Sam Bankman-Fried, and his family. This legal move comes as part of FTX's ongoing investigation into funds that were allegedly misappropriated and stolen. The company, which declared bankruptcy in November, aims to recover misused funds to repay its customers.

Subpoenas for Former Insiders

U.S. Bankruptcy Judge John Dorsey has allowed FTX to subpoena several individuals, including Bankman-Fried's family members and former executives. Notably, these subpoenas target former Chief Technology Officer Gary Wang, ex-Alameda Research CEO Caroline Ellison, and former Chief Operating Officer Constance Wang. While most are cooperating, discussions with Ellison continue, and Bankman-Fried remains unresponsive. Wang and Ellison have admitted guilt to fraud charges, whereas Bankman-Fried has pleaded not guilty and awaits trial.

Investigating Questionable Spending

The subpoenas focus on dubious expenditures by FTX insiders, such as $16.7 million spent on real estate in the Bahamas by Bankman-Fried's parents. Additionally, a Washington, D.C., building purchased by Guarding Against Pandemics, linked to the Bankman-Fried brothers, is under scrutiny. FTX is also exploring political donations, including those made by Bankman-Fried's mother through a political action committee.

Ongoing Legal Proceedings

FTX continues to gather information crucial for its investigation. These efforts are part of a broader strategy to address the financial discrepancies linked to its collapse. The outcome of these legal actions could significantly impact the company's ability to reimburse its creditors and restore its reputation in the crypto industry.