Bankruptcy & Restructuring News Headlines for Monday Nov 14, 2022

Here's what we are reading this morning:

TuSimple Co-Founder Ousts Board That Fired Him Last Month - WSJ: Turmoil at the self-driving trucking company comes as the FBI, SEC probe TuSimple’s ties to a Chinese startup.

SEC Commissioner Hester Peirce: FTX’s Collapse Could Finally Be ‘Catalyst’ for Regulation: The crumbling of crypto exchange FTX and its subsequent bankruptcy filing has brought much negative attention for the crypto industry. However, that may be just the wake-up call U.S. lawmakers need, said Hester M. Peirce, a commissioner at the Securities and Exchange Commission

Briefing: FTX Ventures Head Amy Wu Resigns — The Information: Amy Wu, a former partner at Lightspeed Venture Partners that joined FTX in January to launch a $2 billion venture fund, has resigned, she told The Information on Friday.

Investors Who Put $2 Billion Into FTX Face Scrutiny, Too - The New York Times: FTX was his company, Mr. Bankman-Fried told them, and he planned to run it with little oversight. Interested investors should “support him and observe,” one investor who heard the pitch said.

The Block: California moves to suspend BlockFi’s lending license in state: California's Department of Financial Protection and Innovation said it has issued a notice to suspend crypto lender BlockFi's licensee in the state for 30 days pending an investigation.

Voyager Digital and Voyager Official Committee of Unsecured Creditors Provide Update on Reorganization Plan: Voyager has reopened the bidding process for the company, and is in active discussions with alternative bidders. Voyager and the UCC are moving with all due care and deliberate speed to identify an alternative plan of reorganization

American Dream cuts a deal with lenders to extend debt | Retail Dive: The arrangement could give the massive mall in New Jersey more time after a tumultuous financial ride since opening. 

At least $1 billion of client funds missing at failed crypto firm FTX – sources | Reuters: At least $1 billion of customer funds have vanished from collapsed crypto exchange FTX, according to two people familiar with the matter.

FTX Crypto Wallets See Mysterious Late-Night Outflows Totalling Nearly $400M: Nearly $400 million in crypto left bankrupt crypto company FTX’s wallets late Friday, with little clear explanation as to why. FTX US general counsel Ryne Miller tweeted that he was “investigating abnormalities with wallet movements related to consolidation of ftx balances across exchanges.”

Alameda, FTX Executives Are Said to Have Known FTX Was Using Customer Funds - WSJ: Alameda Research CEO and senior FTX officials are said to have known that FTX had lent its customers’ money to Alameda to help it meet its liabilities.

FTX Investigating Possible $515 Million Hack After Bankruptcy Filing - The New York Times: Researchers document $515 million in suspicious transfers from the cryptocurrency exchange.

The Block: Bahamas regulator contradicts FTX claim that it was required to process local withdrawals: The Securities Commission of the Bahamas said it did not require failed crypto exchange FTX to allow withdrawals for users in the country.

The Block: New FTX tokens worth about $380 million appear out of thin air: Crypto exchange FTX has seen 192 million FTX tokens sent from its contract deployer to a newly created crypto address. The number of freshly created tokens eclipsed FTT’s prior circulating supply, which was about 133 million, according to pseudonymous crypto researcher 0xfoobar. Withdrawals Rise After CEO Admits Transaction Problem - WSJ: Customers pulled funds from after the company’s chief executive said the cryptocurrency exchange mishandled a roughly $400 million transaction. 

The Block: FTX under investigation for possible criminal misconduct in the Bahamas: Financial investigators are working closely with the Bahamas Securities Commission to investigate if any criminal misconduct occurred, the Royal Bahamas Police Force said.

FTX’s Balance Sheet, Hack Paint Dim Picture for User Recovery - Bloomberg: A swift plunge in value of FTX’s key crypto assets, along with unauthorized withdrawals of funds after it filed for bankruptcy, suggests that customers of the once popular exchange face a slim chance of recovering much of their deposits.

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