FTX administrators KordaMentha delay local creditors meeting
Administrators of the collapsed local arm of cryptocurrency platform FTX have pushed back the first meeting of creditors until next month.
Administrators of the collapsed local arm of cryptocurrency platform FTX have pushed back the first meeting of creditors until next month citing the complexities of sifting through the company’s affairs and the large number of customers.
KordaMentha partner Scott Langdon said the administration was “highly complex” and there were around 30,000 customers and creditors, “the bulk of whom were customers of the cryptocurrency business”.
The first meeting was to have taken place on the weekend, after KordaMentha was called in by FTX founder Sam Bankman-Fried on November 11. Additional documents lodged with the corporate regulator show KordaMentha was only told it may be needed one day earlier.
“We are mindful this is a significant number of customers and creditors, each of whom is likely to have a unique claim as well as having little familiarity with the administration process and what to expect,” Mr Langdon said in a statement.
FTX collapsed after a run on holdings revealed an $US8bn ($12bn) funding gap. The company had also lent customer funds to its trading affiliate, Alameda.
John Ray, who was installed as chief executive of FTX last week, told a court on Friday that the bankruptcy process in the US would involve an investigation into claims of wrongdoing made against Mr Bankman-Fried.
“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Mr Ray wrote in court filings.
“From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”
The lack of clarity over the company’s corporate structure may impede creditor returns.
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