Former CEO of FTX refuses to testify in Voyager Digital’s bankruptcy case

02/22/2023 04:22 • Blockchain Buzz • 148 views

On February 22, according to Bloomberg News, Sam Bankman-Fried (SBF), the former chief executive of FTX, refused to testify in the bankruptcy case of Voyager Digital. Marc R. Lewis, the lawyer of SBF, asked the court on Tuesday to refuse the summons issued by the lawyer of the unsecured creditor of Voyager.

SBF refused to testify in the Voyager Digital bankruptcy case

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Sam Bankman-Fried, the former Chief Executive Officer (CEO) of FTX, has reportedly refused to testify in the bankruptcy case of Voyager Digital, according to Bloomberg News. Marc R. Lewis, SBF’s lawyer, submitted a request to the court on Tuesday, asking it to reject the summons issued by the lawyer of the unsecured creditor of Voyager.

This development came after Voyager Digital filed for Chapter 11 bankruptcy on February 9, 2021, citing difficulties in resolving a disputed claim with a key vendor. The cryptocurrency trading platform stated that it only had approximately $1.7 million in cash and $21.6 million in digital assets, which were not enough to cover its debts. Voyager reported that it owed approximately $146.3 million in unsecured claims and $20 million in secured claims.

SBF’s refusal to testify in the bankruptcy case could be seen as an attempt to distance himself from the situation. As the former CEO of FTX, a popular cryptocurrency derivatives exchange, he may have had prior knowledge or involvement in Voyager Digital’s finances or operations. However, since he is no longer affiliated with FTX, he may argue that he no longer has any relevant information to contribute to the case.

It is worth noting that SBF has been involved in numerous legal cases related to cryptocurrency trading and regulation. In December 2020, the Commodity Futures Trading Commission (CFTC) fined FTX $150,000 for offering illegal cryptocurrency derivatives to retail traders. SBF has also been a vocal critic of the US Securities and Exchange Commission’s (SEC) efforts to regulate the cryptocurrency industry, claiming that the agency’s rules are unclear and overly burdensome.

In conclusion, SBF’s refusal to testify in Voyager Digital’s bankruptcy case could have significant implications for the outcome of the case. It remains to be seen how the court will react to his request to reject the summons issued by the unsecured creditor’s lawyer. The case highlights the challenges and risks associated with investing in the cryptocurrency industry, which is still largely unregulated and subject to fluctuating market conditions.

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Former CEO of FTX refuses to testify in Voyager Digital’s bankruptcy case

SBF refused to testify in the Voyager Digital bankruptcy case

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