Failed crypto firm FTX received court approval on Wednesday to issue subpoenas to its founder Sam Bankman-Fried and members of his family as part of the company’s investigation into “misappropriated and stolen” funds.
FTX, a once-prominent crypto exchange, filed for bankruptcy protection in November amid allegations that Bankman-Fried used FTX customers’ money to prop up the balance sheet of the FTX-affiliated hedge fund Alameda Research. FTX said that it needs more information from former insiders, including its indicted founder, to identify misspending that could be clawed back to repay FTX’s customers.
U.S. Bankruptcy Judge John Dorsey, who is overseeing FTX’s Chapter 11 proceedings, approved FTX’s request to issue subpoenas to 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….