FTX got its approval from the court regarding its motion for subpoena, one that asks Sam Bankman-Fried, the Bankman-Fried family, and known associates to show up to his hearing. This subpoena aims to investigate the paper trail of Bankman-Fried and the company, focusing on the "misappropriated funds" of the company that it would use to pay off customers.
The FTX Bankruptcy lawsuit aims to give its investors and traders back the money they put into the company and regain what it once lost.
FTX Subpoena for Bankman-Fried and Co. Gets Court Approval
(Photo : David Dee Delgado/Getty Images)
NEW YORK, NY - DECEMBER 22: FTX founder Sam Bankman-Fried leaves Manhattan Federal Court after his arraignment and bail hearings on December 22, 2022 in New York City.
As the court files revealed, a motion for a subpoena filed by FTX this February got its court approval from US Bankruptcy Judge John Dorsey earlier today. This subpoena asks Sam Bankman-Fried and his family to appear before the law, the prosecutors, the jury, and the public to provide their testimonies that FTX's team will question.
FTX's goal is to find answers as to where the company's missing funds and money went to or are still stashed, one that it would need to pay off its investors and customers who remain hung from its downfall.
The subpoena centers on asking Sam Bankman-Fried, his parents Barbara Fried and Joseph Bankman, his brother Gabriel Bankman-Fried, former FTX Chief Technology Officer Gary Wang, former Alameda Research CEO Caroline Ellison, and former FTX chief operating officer Constance Wang to show up for the hearing.
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Bankman-Fried, Friends and Family Needs to Show Up
According to Reuters, FTX has a long list of questions about the missing funds that may be linked to Bankman-Fried and its associates, with the money to soon repay customers.
It centers on the $16.7 million spent on real estate in the Bahamas by Bankman-Fried's parents and Guarding Against Pandemics, a Washington-based organization with its headquarters bought by the Bankman-Fried brothers.
Sam Bankman-Fried remains unresponsive, while others already agreed to their attendance.
FTX Lawsuit and its Bankruptcy Case
The FTX lawsuit against Sam Bankman-Fried is one massive case in the present as it was a chaotic one for the once globally-significant cryptocurrency trading firm, focusing on missing money and funds in its downfall. There were people to be blamed in this bankruptcy case as this was not a regular one, which FTX had already pursued against former executives who had already pleaded guilty.
However, its co-founder and former CEO, Bankman-Fried, pleaded not guilty to the fraud charges against his name, which launched a federal investigation in the US court set later this year.
FTX is going against its creator, Sam Bankman-Fried, who is now compelled to go to the court and explain his side of the things, along with associates and family members, now that a subpoena is on their heads.
Related Article: Federal Prosecutors Seize Nearly $700 Million FTX Assets Connected to Sam Bankman-Fried
