James Bromley, of Sullivan and Cromwell who is representing FTX, detailed the company’s rise and collapse in a brief presentation during the hearing, explaining how the company fell apart within the course of two weeks after a CoinDesk report showed that Alameda Research, a subsidiary of the overall FTX group, held an unexpectedly large amount of FTT tokens, issued by FTX itself.

The attorney questioned some of FTX’s expenditures, saying that one of the U.S. entities spent around $300 million on real estate in The Bahamas – homes and vacation homes for members of FTX’s leadership team. Though Bromley did not identify Bankman-Fried by name, he told the court that FTX “was in the control of a small group of inexperienced and unsophisticated individuals, and unfortunately, the evidence seems to indicate that some or all of them are also compromised individuals.”