Welcome to BitBoy Crypto!
My name is Ben.
Today, we're going to be taking a look at an interesting development
going on with the FTX case,
how it has to do with their bankruptcy and one Dan Friedberg.
There's some people that are not happy with Dan Friedberg
and want to make him testify.
He has been the most silent, shadowy figure in this entire case.
And we're going to take a look at what they're trying to do right now to get him out.
So, back on January 12,
our friend Sam Bankman-Fried--
you guys know, great friend of the channel.
We love Sam.
We even went to his house in the Bahamas, as you guys know.
But he did this FTX Pre-Mortem Overview.
So SBF has been pushing back against this idea
that they needed to go through bankruptcy in the beginning.
He's saying everything is solvent. There's no problems.
Somebody shared a video
and said this is the greatest video ever on the internet.
I think Scott Melker said it.
It's where a lady has a baby in her hand,
and she sees a little carrier that the kid should be in,
and she sees the kid's missing,
and she forgets the kid's in her arm,
and she's running around and she's looking for the baby,
and then she goes,
"Oh, there's the baby."
That's kind of like Sam Bankman-Fried running around looking for all this money for FTX.
We know the money's all there and he knows the money's all there,
but he knows it's hidden in a lot of different places.
So this is where I really want to get to here.
You can see he shows the balances.
He says, "Oh, you know, we don't need bankruptcy,"
blah, blah, blah, blah.
But a lot of the issues here have to do with Sullivan and Cromwell.
So senators have raised concerns about a potential conflict of interest
from Sullivan and Cromwell, the bankruptcy attorneys.
Contrary to S&C's statement that they had a limited
and largely transactional relationship with FTX,
S&C was one of FTX International's two primary law firms.
And if--
hey, if you're a law firm for FTX,
you did a great job.
Now, what's interesting here is they try to position themselves
as they are the only people that can be in charge of this bankruptcy.
Well, here we have FTX defending the choice of the law firm
to guide through the bankruptcy.
So scroll down here.
Collapsed crypto exchange FTX will try to convince a judge at a hearing on Friday
to sign off on its hiring of lawyers and financial advisers,
amid allegations that its chosen law firm's prior work for FTX
creates a conflict of interest.
Of course, if you worked with FTX as a law firm before
and you missed all the compliance errors that were going on,
you don't deserve to be able to walk them through bankruptcy.
It doesn't make any sense.
The US Department of Justice's bankruptcy watchdog has asked
US Bankruptcy Judge John Dorsey in Wilmington, Delaware,
not to approve FTX's hiring of Sullivan & Cromwell,
arguing that the elite New York law firm has not disclosed sufficient information
about its past ties to FTX,
including the fact that FTX's US general counsel, Ryne Miller,
is a former partner at the firm.
Former top FTX attorney Daniel Friedberg also opposed Sullivan & Cromwell's hiring,
saying Thursday that the law firm had conflicts of interest
stemming from its connections to Miller.
Now, very interesting.
What we're seeing here,
we're seeing Dan Friedberg try to throw Ryne Miller under the bus,
and yet Dan Friedberg hasn't said anything about SBF at all.
But yet he's throwing Ryne Miller under the bus.
What's the deal?
We've been told Ryne Miller is one of the good guys in this case,
in all reality.
So here's something very fascinating that has just came out.
This here is a filing.
Now, what is this filing about?
What are they trying to do here?
Objectors Warren Winter and Richard Brummond (collectively, the "Individual Objectors")
hereby submit this emergency motion for the adjournment of the hearing
on the above-captioned Application,
which is currently scheduled at 10 AM on January 20,
which I believe that's today.
That is today.
So, what they're trying to do here is they're trying to get Dan Friedberg
to testify about why or why not they should hire Sullivan and Cromwell.
But the key here is,
Daniel Friedberg,
he doesn't want to be seen.
He doesn't want to be heard from.
He wants to do everything in the shadows.
So, here, they're trying to get him to testify live,
which they're going to have a hard time doing.
Counsel for the Individual Objectors have never had any contact
or communication with Dan Friedberg, whether before this filing or after.
It appears that Mr. Friedberg styled his Declaration
"in support of" the Amended Objection of his own volition,
and certainly without consulting the Individual Objectors' counsel
or seeking their permission.
So let me break this down exactly what this means.
Dan Friedberg has been running on his own, trying to create his own narrative,
trying to put the right lawyers in place, trying to put the right people in the right positions
to help push his narrative for how he thinks all this needs to break down.
You have this Individual Objectors' counsel,
which is led by these two guys, or these two guys are at least members,
Warren Winter and Richard blooming-something.
Sorry, Richard.
And so he's making all these moves without consulting them,
which is not the way this is supposed to work inside of a bankruptcy.
So, will Dan Friedberg actually have to testify?
Well, it's a great question.
We don't know.
A lot of people don't know a lot of things when it comes to FTX.
Of course, we know that back on December 1,
the FTX ex-CEO Sam Bankman-Fried said he unknowingly commingled funds.
There's a lot of unknowing things that have gone along here.
And what you start to see is a pattern of behavior from people who work at FTX.
Whether it's Dan Friedberg,
whether it's Sam Bankman-Fried,
nobody knew anything!
Nobody knows anything about what happened.
And we know that's absolutely a lie.
Of course, we know this.
Congress' FTX problem: 1 in 3 members got cash from crypto exchange's bosses.
Where has this money gone?
We don't know.
Are they going to have to claw back all that money?
We've been told the answer is yes.
But very few--
I think they said only 8 senators out of 131 have actually given money back to FTX.
Remember,
your FTX user funds went to support senators and congressmen and congresswomen.
Okay?
Maybe some you don't support your money went to support.
And so this money's got to go back to FTX for the bankruptcy hearing.
And I'm not sure if you guys know this,
but, supposedly, now, FTX has a chance to reboot and run again.
That's what John Ray, the CEO of FTX right now,
the bankruptcy attorney,
has said is going to possibly happen.
There's a chance they may be able to reopen FTX.
Now, here's where this gets a little convoluted.
What Sam Bankman-Fried and what a lot of these people were waiting on
was for the market to turn around
because if the value of Bitcoin were to go up,
their insolvency problems,
well, they go away.
So are we going to see a new positioning as we get new people coming into crypto
ready for the bull run that maybe don't know what happened at FTX
or what happened at Celsius or what happened at Three Arrows Capital
coming in and naively jumping back into these exchanges?
I don't know. I think FTX is going to be a hard, hard sell for people
because Sam Bankman-Fried is so out there.
He's so recognizable because of his bad haircut.
And I hope that bad haircut alone will be enough to keep people away from FTX.
We'll continue to watch this developing story.
That's all I got.
Be blessed.
BitBoy out.