FTX is expected to make its debut appearance today in the U.S. Bankruptcy Court for the District of Delaware, where its new management is expected to recount events leading up to the cryptocurrency platform’s sudden collapse and explain the steps it has since taken to secure customer funds and other assets, WSJ Pro Bankruptcy reported. FTX’s lawyers are advancing an unprecedented chapter 11 case marked already by allegations of major failures against its former leadership and a budding jurisdictional dispute with the government of the Bahamas, where the firm’s inner circle ran its doomed crypto operation. Contagion is still spreading from the failure of FTX, and the impact on its one million estimated customers won’t be known for some time. FTX's new management is now seeking to pay a cybersecurity services provider and other vendors involved in running its business operations. The firm is also seeking to establish a new system to manage its remaining cash and keep employees on the payroll during bankruptcy. That may not be an easy task. FTX advisers said in court papers that it suffered “extraordinary attrition” before filing chapter 11 last week. The new management is also expected to update the court on an emerging dispute with public officials in the Bahamas, where FTX founder and former chief executive Sam Bankman -Fried resides. Tuesday’s hearing could also provide additional information on transfers that were made out of FTX following the chapter 11 filing.
