FTX Insiders Served Subpoenas Over Fallen Crypto Exchange’s Financial Dealings

FTX bankruptcy proceedings have taken another twist after the company’s insiders were all hit with fresh subpoenas.

The bankruptcy court has ordered Sam Bankman-Fried, former Alameda CEO Caroline Ellison, former FTX CTO Gary Wang, and former co-CEO of FTX Digital Markets Nishad Singh to produce a range of documents related to the exchange’s activities.

Bankman-Fried’s father Joseph Bankman and mother Barbara Fried are among those subpoenaed too, according to court documents filed Tuesday in the U.S. Bankruptcy Court for the District of Delaware.

FTX’s legal team asked for permission to serve subpoenas to the group on January 25, saying that “key questions remain… concerning numerous aspects of the Debtors’ finances and transactions.”

The subpoenas demand a considerable amount of information regarding the now-defunct crypto exchange and its affiliated companies, including “any payments, digital assets, real estate, fiat currency, or other assets received from any of the entities in the FTX Group,” or from any executive or employee of any entity in the FTX Group.

All but Bankman-Fried must supply the requested information by February 16. The disgraced crypto founder has until February 17 to provide the relevant documents.

FTX suspicious activity information demanded

Both Bankman-Fried and Ellison have been specifically asked to provide information about all communications sent or received from personal email accounts or instant messaging platforms concerning the FTX Group or assets of the FTX Group or Alameda.

They are also asked to produce information about Binance’s move to acquire FTX last November, which eventually fell through after CEO Changpeng Zhao stated that FTX’s liquidity problems were “beyond our control or ability to help.”

FTX’s legal team also wants to see documents related to “any payments or other transfers of value to any political campaigns, politicians, political action committees, political parties,” and other affiliated individuals.

The court has asked SBF’s father to produce information about “contemplated, potential, or actual purchases of real estate,” including any real estate in the Bahamas.

FTX Digital Markets’ Singh has been specifically asked to produce documents related to FTX Group’s risk management and automated liquidation systems, processes, and policies, including all documents that would shed light on how those applied or did not apply to Alameda.

SBF, who faces eight criminal charges, including wire fraud, money laundering, and misappropriation of customer funds, last month pleaded not guilty to the alleged crimes.

Former Alameda CEO Ellison and FTX co-founder Wang, on the other hand, have both admitted to fraud and are cooperating with federal prosecutors.