FTX Bankruptcy Team, Feds Meet in New York

FTX’s new chief executive officer and bankruptcy lawyers met Manhattan federal prosecutors investigating the collapse of the cryptocurrency exchange, Bloomberg News reported on Thursday, citing people familiar with the matter.

Lawyers for FTX from Sullivan & Cromwell, including former Securities and Exchange Commission enforcement director Steve Peikin and former Manhattan federal prosecutor Nicole Friedlander, were also present, according to the report.

Last month, FTX filed for U.S. bankruptcy protection and its founder Sam Bankman-Fried resigned as chief executive, after rival exchange Binance walked away from a proposed acquisition.

The implosion of FTX has rippled across the industry, hobbling liquidity at firms with exposure to what was once one of the world’s biggest crypto exchanges, and prompting investigations by regulators in several countries.

FTX did not immediately respond to a Reuters request for comment.