Former Securities Exchange Commission (SEC) official John Reed Stark described the FTX reorganization plan as a “highway robbery of highway robbers.”
Former Securities Exchange Commission (SEC) official John Reed Stark has suggested that the FTX restructuring plan might be a way for the legal team to profit from the bankruptcy process.
In a post on X social media platform, Stark said all FTX customers should receive a sarcastic “Thank You” note from the bankrupt exchange’s legal team, given the substantial profits they made during the bankruptcy proceedings. Stark also remarked that each legal team member might afford a new beach house in 2024.
During a Jan. 31 hearing in the U.S. Bankruptcy Court for the District of Delaware, FTX lawyer Andy Dietderich of Sullivan and Cromwell clarified that, despite extensive efforts, there were no plans to relaunch FTX, known as FTX 2.0, within the current Chapter 11 bankruptcy framework.
