James Bromley, partner at law firm Sullivan & Cromwell, which represents debtors in FTX’s Delaware County bankruptcy lawsuit, said assets at the firm continue to be at risk from cyberattacks.
On November 22, Bromley said on a live broadcast of FTX Trading’s bankruptcy case that new FTX CEO John Ray raised fundamental objections to taking the firm, remaining employees and funds through the controversial and public collapse. told. A core group of employees continued to work on the exchange to ensure the security of assets and record keeping, according to the FTX associate advisor, but hackers have remained a threat since the company filed for bankruptcy on November 11.
“We’re not just talking about crypto, cash or physical assets, we’re also talking about information, and in this case information is an asset. Unfortunately, a significant amount of assets have either been stolen or lost. We’ve been cyberattacked since the filing date, and we’ve had it before,” Bromley said. As I mentioned, we have used advanced specializations to protect against hackers, but they are still in progress,” he said.
The attorney said that FTX has received help from several legal, cybersecurity and blockchain analytics firms. Bromley added that there was another cybersecurity firm involved, but said he would not reveal the name of the firm because of concerns that hackers would exploit this information.
The cyber attacker received 228,523 Ether (from FTX) during the stock market crash and bankruptcy.ETH) and later part of the funds in Bitcoin (BTC) to . As of November 21, the attacker moved approximately $200 million worth of ETH to 12 different wallet addresses.
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Leadership-level restructuring is a top priority for FTX under Ray, who has been critical of former CEO Sam Bankman-Fried’s public comments on the fiasco. Bromley also stated that under Bankman-Fried, the stock market is under the control of a small group of inexperienced and uninformed individuals, and that some or all of them may have been compromised.
“At the same time as the attack, there was a leadership crisis in FTX. FTX companies were controlled by a very small group of people led by Sam Bankman-Fried. During the attack, Mr. Bankman-Fried’s leadership eroded, resulting in many resignations.
The live-streamed hearing was the first public hearing since FTX Group filed for bankruptcy on November 11, and new information regarding the company’s bankruptcy continues to be revealed through court documents and media outlets. On the other hand, Bankman-Fried, family members and other top FTX executives reportedly purchased multiple properties in the Bahamas valued at more than $121 million. Bromley stated in court that an agency affiliated with Alameda Research had purchased nearly $300 million worth of real estate in the country, but did not publicly name the former FTX CEO.