FTX lawyer's request for court to postpone bankruptcy proceedings denied by judge

FTX lawyer Lawrence Gebhardt requested a Delaware court to postpone the bankruptcy proceedings as the reasons for FTX's bankruptcy are still pending clarification. However, this motion has been rejected by Judge John Dorsey.

FTX Lawyer Requests Court to Postpone Bankruptcy Proceedings

According to The Block, Lawrence Gebhardt of Gebhardt and Smith, representing FTX in the ongoing bankruptcy case, has requested the court to delay the proceedings to determine the exact cause of FTX's bankruptcy. However, key parties involved in the case are located in different parts of the world, requiring significant travel time and expenses to convene.

For instance, one of the defendants in this case, former FTX lawyer Dan Friedberg, resides in Washington, while another former lawyer, Can Sun, resides in the Bahamas, and recently convicted of fraud, former CEO Sam Bankman-Fried, is currently in prison.

Gebhardt pointed out that in November 2022, just days before FTX declared bankruptcy, lawyers from Sullivan and Cromwell, who represented FTX at the time, stated that FTX had the ability to pay. Therefore, it is crucial to understand what transpired between November 2021 and October 2022 that led to FTX's bankruptcy.

Jonathan Carter, a partner at Sullivan and Cromwell, also responded to this, stating that the defense has had sufficient time for fact-finding and had been notified of all relevant documents as early as September 21.

Judge Directly Rejects

The motion, however, has been rejected by Judge John Dorsey. Dorsey stated:

If this is as complex as he says, then we need to start now, not delay.

Earlier this month, a jury unanimously agreed on seven charges against SBF, with a tentative sentencing date set for March 28, 2024, totaling 115 years in prison. However, legal experts previously suggested that SBF might only face 10 to 20 years in prison.

SBF Found Guilty on Seven Charges, Sentencing in March, SBF: Respects Jury's Decision, I Am Innocent