ChainCatcher message, according to the latest developments in the FTX bankruptcy case, a significant claim against FTX EU Ltd. has been transferred to FTXCREDITOR, LLC. This transfer may expedite all further proceedings, but it also poses risks to smaller creditors. According to documents submitted to the U.S. Bankruptcy Court for the District of Delaware on May 15, this claim is part of the ongoing Chapter 11 proceedings, following litigation against FTX EU Ltd. While this could potentially accelerate the case towards resolution, it indeed presents risks for smaller creditors. Due to the single-point entry of claims through the LLC, smaller creditors may be overshadowed by larger creditors—resulting in receiving less favorable terms or outcomes.

According to ChainCatcher, The Block reported that U.S. Senators Elizabeth Warren and Chuck Grassley have sent a letter to Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam, requesting the submission of correspondence with FTX founder Sam Bankman-Fried (SBF) by April 29.The two senators stated that to determine the nature of the relationship between the regulatory agency CFTC and SBF, and to uncover how this multi-billion dollar criminal case occurred, Congress and market regulators like the CFTC must take action to safeguard the savings and pensions of the American public.It is reported that in 2022, Behnam testified before the Senate Agriculture Committee, stating that his team met with SBF and other FTX executives about 10 times in the 14 months leading up to FTX's bankruptcy, and exchanged "multiple messages" with SBF.

ChainCatcher news, FTX creditor Sunil Kavuri posted on X platform stating that Senators John Hickenlooper, Cynthia Lummis, and Thom Tillis wrote to FTX bankruptcy judge Dorsey, requesting an investigation into the low-priced sale of SOL by the FTX bankruptcy law firm Sullivan and Cromwell.According to previous reports, Sullivan and Cromwell sold SOL, originally valued at 1.7 billion USD, for 64 USDT.

ChainCatcher news, according to The Block, the FTX bankruptcy case may take years to resolve. This is mainly due to FTX lawyers attempting to recover multiple payments made before the exchange's bankruptcy, resulting in several retroactive claims. Legal expert Alan R. Rosenberg pointed out that the FTX case, filed last November, will take longer compared to other cryptocurrency bankruptcy cases like Celsius and BlockFi.It is reported that FTX is currently working to recover funds spent by its former leadership, while also facing a claim of up to $24 billion from the IRS, which alleges that FTX has not fully paid its taxes. In addition, FTX is dealing with multiple lawsuits, including those against former CEO Sam Bankman-Fried and his parents, as well as payment recoveries from its charitable organization and several celebrities. These lawsuits are typically resolved through out-of-court settlements, but negotiations for settlements also take time.Moreover, how to calculate the changing value of cryptocurrencies over time, and whether creditors should be repaid in cryptocurrencies or fiat currency, has become a dilemma in cryptocurrency bankruptcies.

ChainCatcher news, according to The Wall Street Journal, Silicon Valley Bank has invited the consulting firm Centerview to discuss self-rescue matters with the law firm Sullivan & Cromwell, which previously handled the FTX bankruptcy case.Earlier, ChainCatcher reported that, according to sources cited by CNBC, Silicon Valley Bank's attempts to raise funds have failed and it is negotiating with large financial institutions to seek a sale. (source link)

According to ChainCatcher news, court documents show that the law firms Sullivan & Cromwell, litigation special counsel Quinn Emanuel Urquhart & Sullivan, and Landis Rath & Cobb, along with consulting firm AlixPartners (which conducted forensic analysis on FTX's DeFi products and tokens), collectively charged $38 million in January for handling the FTX bankruptcy case.Among them, Sullivan & Cromwell was responsible for asset discovery, disposal, analysis, and recovery, with fees amounting to $16.8 million in January (14,569 hours); Quinn Emanuel Urquhart & Sullivan charged $1.4 million, and Landis Rath & Cobb charged $663,995. These three law firms had over 180 attorneys working on the case, along with more than 50 non-attorney staff (such as paralegals). (source link)

ChainCatcher news, February 15, according to Bloomberg, court documents from Tuesday show that as part of the FTX Group bankruptcy, former FTX CEO SBF and his father Joseph Bankman, former Alameda Research CEO Caroline Ellison, FTX co-founder Gary Wang, and former FTX engineering director Nishad Singh have received subpoenas. The subpoenas request a range of documents, such as those related to the termination of Binance's pre-bankruptcy acquisition offer for FTX. They are also required to provide evidence of communications among FTX senior management and backup tweets, some of which have now been deleted. The document submission date for SBF is February 17, while others are due on February 16.Previously reported, Caroline Ellison and Gary Wang reached plea agreements with prosecutors in December 2022, admitting to fraudulent activities within the company. Nishad Singh is seeking a cooperation agreement with U.S. prosecutors regarding the FTX charges. (source link)

ChainCatcher news, according to CoinDesk, a judge in the U.S. Bankruptcy Court for Delaware has approved the removal of FTX's Turkish subsidiary, FTX Turkey, from the FTX bankruptcy case. After FTX filed for bankruptcy in November last year, Turkish law enforcement announced that the company's activities in the country were under investigation, subsequently ordering the seizure of most of FTX's assets in Turkey. The new management of FTX in the U.S. argued that including FTX Turkey and SNG Investments (whose assets and activities are primarily limited to Turkey) in the restructuring plan was futile.The court found that the request was in the best interest of FTX and its assets. The parent company, FTX Trading Ltd., owns 80% of FTX Turkey, while SNG Investments is wholly owned by Alameda Research. (CoinDesk)

ChainCatcher news, according to CoinDesk, court documents show that the law firm Sullivan & Cromwell charged up to $7.5 million during the first 19 days after FTX's bankruptcy.The documents indicate that 32 partners, 85 legal staff, and 34 non-legal personnel worked over 6,500 hours, with some personnel charging as much as $2,165 per hour. Sullivan & Cromwell stated that the fees for senior staff have already been discounted, and the firm is only requesting 80% of the total amount of $9.5 million. (Source link)