Former FTX creditor alleges law firm blocked bids from Bullish, Figure

A former member of the FTX Unsecured Creditors Committee (UCC), identified as Arush, has alleged that three major companies sought to bid for the bankrupt exchange but were blocked by its bankruptcy law firm. In a post on X, Arush stated that the UCC had organized a consortium bid for an FTX 2.0 relaunch, which he believed could have provided billions of dollars in value to creditors. According to Arush, the interested bidders were crypto exchange Bullish, blockchain-based online lending platform Figure, and one unnamed centralized exchange. He explained that these firms proposed an equity structure that would have added tens of billions of dollars to creditor repayments, not just a cash offer. Arush claimed the law firm obstructed the deal and forced a liquidation to secure higher fees for itself, calling recent assertions by FTX's lawyers that there were no interested buyers a lie. The post was also shared by FTX founder Sam Bankman-Fried.