1 00:00:00,000 --> 00:00:12,040 Good afternoon, this is Judge Dorsey. 2 00:00:12,040 --> 00:00:19,280 We're on the record in FTX trading limited, case number 22-11068 and FTX digital markets 3 00:00:19,280 --> 00:00:25,000 limited, case number 22-11217. 4 00:00:25,000 --> 00:00:30,560 This was a scheduling conference that I requested. 5 00:00:30,560 --> 00:00:35,560 I'll give the same admonishment I've been giving at the beginning of the Zoom hearings 6 00:00:35,560 --> 00:00:36,840 in these cases. 7 00:00:36,840 --> 00:00:38,520 This is a formal court proceeding. 8 00:00:38,520 --> 00:00:42,720 I expect the parties to conduct themselves accordingly and anyone on the call to conduct 9 00:00:42,720 --> 00:00:44,720 themselves accordingly. 10 00:00:44,720 --> 00:00:46,200 Any disruptions will not be tolerated. 11 00:00:46,200 --> 00:00:52,440 If there is a disruption, you will be removed and not be allowed back into the Zoom hearing. 12 00:00:52,440 --> 00:00:56,600 Unless you are going to be presenting, please keep your camera turned off. 13 00:00:56,600 --> 00:01:03,200 As I mentioned at the beginning, this is a scheduling conference. 14 00:01:03,200 --> 00:01:10,880 So unless you, I'm not going to hear any arguments on any motions or hear complaints from anybody 15 00:01:10,880 --> 00:01:14,840 who has something they might want to say in some future hearing, we'll reserve those for 16 00:01:14,840 --> 00:01:15,840 a later time. 17 00:01:15,840 --> 00:01:24,280 So with that, I'll go ahead and turn it over to debtors council, I guess the U.S. debtors 18 00:01:24,280 --> 00:01:27,280 council, I should say. 19 00:01:27,280 --> 00:01:30,200 Let's see, I have a double hearing here. 20 00:01:30,200 --> 00:01:31,200 Good afternoon, Your Honor. 21 00:01:31,200 --> 00:01:39,000 James Bromley of Sullivan and Cromwell on behalf of the debtors. 22 00:01:39,000 --> 00:01:41,960 Would you like to take appearances for those who are speaking or would you like me to just 23 00:01:41,960 --> 00:01:42,960 begin? 24 00:01:42,960 --> 00:01:43,960 No, you can go ahead and begin. 25 00:01:43,960 --> 00:01:48,920 I've got the list of everybody who's appearing here, so I can – and I assume that those 26 00:01:48,920 --> 00:01:55,720 who are – have their cameras on are expecting to make comments, so go ahead. 27 00:01:55,720 --> 00:01:57,720 Thank you, Your Honor. 28 00:01:57,720 --> 00:02:01,520 The – I'm here with my colleagues, Brian Gluckstein, whose name is appearing under 29 00:02:01,520 --> 00:02:07,560 my face, so I'm averaging up today, and Alexa Cranseley. 30 00:02:07,560 --> 00:02:11,840 We have a number of matters with respect to scheduling we'd like to discuss. 31 00:02:11,840 --> 00:02:16,960 The first I will deal with, which has to do with the joint provisional liquidators, and 32 00:02:16,960 --> 00:02:23,600 there are a number of matters that have been – that are on for consideration. 33 00:02:23,600 --> 00:02:26,560 I see that Mr. Zaki is here from White and Case. 34 00:02:26,560 --> 00:02:31,480 We have been in conversations over the past several days, notwithstanding the volume of 35 00:02:31,480 --> 00:02:32,480 papers that have been filed. 36 00:02:32,480 --> 00:02:37,960 We have also been trying to have conversations about moving forward on a constructive basis. 37 00:02:37,960 --> 00:02:43,720 And based on communications that we've been having between our offices over the past several 38 00:02:43,720 --> 00:02:48,880 hours, I think that we have come to a point where we believe that it's appropriate to 39 00:02:48,880 --> 00:02:54,840 inform the court that we would like additional time to try to reach an agreement, and that 40 00:02:54,840 --> 00:03:00,200 we would not need to go forward on Friday with respect to the hearing on the motion 41 00:03:00,200 --> 00:03:03,480 to compel. 42 00:03:03,480 --> 00:03:08,840 We would be at the court's convenience, we would look for a hearing sometime in the 43 00:03:08,840 --> 00:03:14,400 next week, near the end of next week, that would give us time to allow us to meet in 44 00:03:14,400 --> 00:03:20,760 person and see if we can come across the finish line with an agreement that will resolve most, 45 00:03:20,760 --> 00:03:25,200 if not all, of the issues that exist between the JPLs and the debtors. 46 00:03:25,200 --> 00:03:26,200 Okay. 47 00:03:26,200 --> 00:03:27,200 Mr. Zaki, go ahead. 48 00:03:27,200 --> 00:03:28,200 Sorry, Jason Zaki, from White and Case. 49 00:03:28,200 --> 00:03:40,560 On behalf of the JPLs and the Bahamian debtors, I agree with what Mr. Bromley said. 50 00:03:40,560 --> 00:03:43,600 We've been working in parallel paths, so while there's been a fair bit of litigating, we've 51 00:03:43,600 --> 00:03:45,440 also been negotiating. 52 00:03:45,440 --> 00:03:50,480 And I think that if we could have, obviously, Your Honor, schedule is what it is. 53 00:03:50,480 --> 00:03:55,400 But if you had a date at the end of next week to give us, I think we could use that extra 54 00:03:55,400 --> 00:03:56,400 time constructively. 55 00:03:56,400 --> 00:03:57,400 Okay. 56 00:03:57,400 --> 00:04:12,960 End of next week, that puts us to the 13th, 12th or 13th. 57 00:04:12,960 --> 00:04:22,960 I can do the 13th anytime after 11, 11 or later, whatever time works for the parties. 58 00:04:22,960 --> 00:04:28,000 Sure, Your Honor, I would suggest if it works for Mr. Bromley and his clients that we take 59 00:04:28,000 --> 00:04:31,860 the earliest start time we have, so I'd suggest 11. 60 00:04:31,860 --> 00:04:33,860 That works for the debtors, Your Honor. 61 00:04:33,860 --> 00:04:34,860 Okay. 62 00:04:34,860 --> 00:04:41,640 We'll go ahead and move the January 6th hearing to the 11th, or excuse me, to the 13th at 63 00:04:41,640 --> 00:04:44,640 11 a.m. Eastern time. 64 00:04:44,640 --> 00:04:46,960 Friday the 13th. 65 00:04:46,960 --> 00:04:47,960 Yes. 66 00:04:47,960 --> 00:04:50,960 I'm not superstitious, so. 67 00:04:50,960 --> 00:04:58,160 And, Your Honor, that – we would move all of the pending matters with respect to the 68 00:04:58,160 --> 00:05:03,880 JPLs out to that date, and hopefully we would have an agreement. 69 00:05:03,880 --> 00:05:06,320 If we don't, we can then talk about scheduling at that time. 70 00:05:06,320 --> 00:05:07,320 Okay. 71 00:05:07,320 --> 00:05:11,840 When you say all of the matters, other than the motion to lift stay and turnover, what 72 00:05:11,840 --> 00:05:14,840 else are we talking about? 73 00:05:14,840 --> 00:05:18,200 Well, we have – there's the petition for recognition. 74 00:05:18,200 --> 00:05:22,640 There is a motion to dismiss the case with respect to one of the U.S. debtors. 75 00:05:22,640 --> 00:05:29,080 There's a motion for provisional relief, which I believe may be mooted by certain events 76 00:05:29,080 --> 00:05:32,880 that occurred, as well as the motion to compel. 77 00:05:32,880 --> 00:05:37,800 So the motion to compel was scheduled for hearing on Friday this week, and we would 78 00:05:37,800 --> 00:05:42,880 just suggest that everything be moved off until the 13th. 79 00:05:42,880 --> 00:05:47,480 If we are unable to reach agreement, we would go forward on a contested basis on the motion 80 00:05:47,480 --> 00:05:52,760 to compel on the 13th, but we would also be able to discuss scheduling for all of the 81 00:05:52,760 --> 00:05:54,280 other matters that remain open. 82 00:05:54,280 --> 00:05:55,280 Okay. 83 00:05:55,280 --> 00:05:56,280 I got you. 84 00:05:56,280 --> 00:05:57,280 You're not asking to schedule the other matters for the 13th? 85 00:05:57,280 --> 00:05:58,280 You're just – 86 00:05:58,280 --> 00:05:59,280 No. 87 00:05:59,280 --> 00:06:00,280 Okay. 88 00:06:00,280 --> 00:06:01,280 All right. 89 00:06:01,280 --> 00:06:05,400 No, I – Your Honor, if I could, I think just to preview, we're hoping to resolve 90 00:06:05,400 --> 00:06:06,400 this if we don't. 91 00:06:06,400 --> 00:06:10,400 I think the parties may have different views as to how to schedule those matters, and I 92 00:06:10,400 --> 00:06:13,600 agree with Mr. Bromley that's something we could take up with the Court next week. 93 00:06:13,600 --> 00:06:18,280 I do want to update the Court with regard to the provisional relief motion. 94 00:06:18,280 --> 00:06:24,440 This concerned a motion that we had filed to take custody of certain bank accounts that 95 00:06:24,440 --> 00:06:27,480 were in the name of the Chapter 15 debtors. 96 00:06:27,480 --> 00:06:33,240 As Mr. Bromley mentioned, since we filed that motion, the United States government has taken 97 00:06:33,240 --> 00:06:36,320 certain actions with regard to those accounts. 98 00:06:36,320 --> 00:06:43,240 We are in contact with DOJ and also with the Chapter 11 debtors and other parties, and 99 00:06:43,240 --> 00:06:46,680 we are trying to see if we can find a consensual path forward with regard to that. 100 00:06:46,680 --> 00:06:51,280 So I don't think there needs to be anything done with regard to that motion at this time, 101 00:06:51,280 --> 00:06:54,600 and we hope to come back to the Court with an agreed path forward. 102 00:06:54,600 --> 00:06:59,120 But I did want to update you about – it may be mooted, it may not, depending on certain 103 00:06:59,120 --> 00:07:03,000 details, but there have certainly been developments, and I just wanted to make sure the Court was 104 00:07:03,000 --> 00:07:04,000 aware of that. 105 00:07:04,000 --> 00:07:05,000 Okay. 106 00:07:05,000 --> 00:07:06,000 Great. 107 00:07:06,000 --> 00:07:07,000 Thank you. 108 00:07:07,000 --> 00:07:08,000 I appreciate it. 109 00:07:08,000 --> 00:07:09,000 All right. 110 00:07:09,000 --> 00:07:10,000 Your Honor, Chris Hanson. 111 00:07:10,000 --> 00:07:11,000 May I be heard for a second? 112 00:07:11,000 --> 00:07:12,000 Go ahead, Mr. Hanson. 113 00:07:12,000 --> 00:07:13,000 Yes, Your Honor. 114 00:07:13,000 --> 00:07:16,440 My name is Chris Hanson with Paul Hastings, proposed counsel to the Official Committee 115 00:07:16,440 --> 00:07:17,440 of Unsecured Creditors. 116 00:07:17,440 --> 00:07:22,280 I just want to introduce myself and my partner, Ken Pasquale, who's on as well, and inform 117 00:07:22,280 --> 00:07:26,640 the Court that we have been involved in the discussions with the debtors and the JPLs, 118 00:07:26,640 --> 00:07:29,640 and we are also hopeful that we can get to a resolution. 119 00:07:29,640 --> 00:07:30,640 Okay. 120 00:07:30,640 --> 00:07:31,640 Great. 121 00:07:31,640 --> 00:07:32,640 Thank you, Mr. Hanson. 122 00:07:32,640 --> 00:07:33,640 All right. 123 00:07:33,640 --> 00:07:34,640 What else do we have? 124 00:07:34,640 --> 00:07:35,640 Your Honor, sorry. 125 00:07:35,640 --> 00:07:45,360 One other detail, given next week's hearing set for the 13th, Your Honor had set a deadline 126 00:07:45,360 --> 00:07:48,640 for our reply of today. 127 00:07:48,640 --> 00:07:52,080 One of the reasons we wanted the extra time is we don't think further pleadings being 128 00:07:52,080 --> 00:07:54,040 filed now will be constructive. 129 00:07:54,040 --> 00:08:00,200 So if we could roll that deadline to next week as well, which I see whatever works for 130 00:08:00,200 --> 00:08:04,200 the Court, I would suggest the 11th, but if Your Honor would like more time to read it, 131 00:08:04,200 --> 00:08:07,200 I would be happy to do so. 132 00:08:07,200 --> 00:08:08,200 Okay. 133 00:08:08,200 --> 00:08:09,200 Any objection, Mr. Bromley? 134 00:08:09,200 --> 00:08:14,880 I'm sorry, Your Honor. 135 00:08:14,880 --> 00:08:21,280 Just as Mr. Zachea was speaking, a fire alarm started in our courtroom here. 136 00:08:21,280 --> 00:08:23,400 So I didn't hear it. 137 00:08:23,400 --> 00:08:27,080 I'm sure I'm okay with it, but if you could just repeat the date, I'd appreciate that. 138 00:08:27,080 --> 00:08:28,080 The 11th. 139 00:08:28,080 --> 00:08:31,080 He's looking to move the date to the 11th. 140 00:08:31,080 --> 00:08:32,080 That is fine. 141 00:08:32,080 --> 00:08:33,080 Okay. 142 00:08:33,080 --> 00:08:34,080 Yeah, one week. 143 00:08:34,080 --> 00:08:35,080 That's fine with me as well. 144 00:08:35,080 --> 00:08:36,080 Thank you, Your Honor. 145 00:08:36,080 --> 00:08:37,080 All right. 146 00:08:37,080 --> 00:08:38,080 I know we have to schedule the trustees motion to appoint an examiner. 147 00:08:38,080 --> 00:08:39,080 That's another one that we need to talk about. 148 00:08:39,080 --> 00:08:40,080 And before we go to that, I just want to make sure I don't forget this because I've forgotten 149 00:08:40,080 --> 00:08:59,080 that the last two times we've talked. 150 00:08:59,080 --> 00:09:05,080 Because of the size of this case, we are going to have to appoint a fee examiner. 151 00:09:05,080 --> 00:09:13,080 So I would ask that the parties meet and confer and come up with someone, including Ms. Sarkisian 152 00:09:13,080 --> 00:09:22,600 in those discussions as well so that we can get a fee examiner on board. 153 00:09:22,600 --> 00:09:23,600 Thank you, Your Honor. 154 00:09:23,600 --> 00:09:29,400 I'm Juliet Sarkisian for the U.S. trustee. 155 00:09:29,400 --> 00:09:32,400 We, our office, would obviously like to schedule the examiner motion as soon as possible. 156 00:09:32,400 --> 00:09:35,400 Have you, have there been any discussions amongst the parties on trying to schedule 157 00:09:35,400 --> 00:09:38,400 a date for that? 158 00:09:38,400 --> 00:09:45,160 No, Your Honor, because I believe Your Honor had stated that on February 11th, there would 159 00:09:45,160 --> 00:09:49,480 be a status conference regarding scheduling that motion. 160 00:09:49,480 --> 00:09:53,320 So we have not actually discussed dates as of yet. 161 00:09:53,320 --> 00:09:56,320 I forgot I had said we would talk about it on the 11th. 162 00:09:56,320 --> 00:10:03,320 Why don't we go ahead and now that we have the committee council on board, why don't 163 00:10:03,320 --> 00:10:08,320 you coordinate with them and see if you can come up with an agreeable date to have that 164 00:10:08,320 --> 00:10:09,320 motion heard. 165 00:10:09,320 --> 00:10:10,320 Thank you, Your Honor. 166 00:10:10,320 --> 00:10:17,320 And if not, if not between now and the 11th, then we'll talk about it on the 11th. 167 00:10:17,320 --> 00:10:19,320 Thank you, Your Honor. 168 00:10:19,320 --> 00:10:24,320 Your Honor, the U.S. trustee has a request regarding scheduling. 169 00:10:24,320 --> 00:10:29,320 I don't know if you want to hear that now, or there are other scheduling matters to be 170 00:10:29,320 --> 00:10:30,320 addressed first? 171 00:10:30,320 --> 00:10:35,320 Well, I don't think we have any particular order, so go ahead as long as you're already 172 00:10:35,320 --> 00:10:38,320 on board here. 173 00:10:38,320 --> 00:10:40,320 Thank you, Your Honor. 174 00:10:40,320 --> 00:10:47,320 Your Honor, for next Wednesday, January the 11th, by my count, there is at least 21 applications 175 00:10:47,320 --> 00:10:50,320 and motions that are scheduled to be heard. 176 00:10:50,320 --> 00:10:57,320 This includes bid procedures, the debtor's request for final approval to redact customer 177 00:10:57,320 --> 00:11:03,320 names and other information from various filings to which the U.S. trustee has filed an objection, 178 00:11:03,320 --> 00:11:07,320 as well as many, many retention applications. 179 00:11:07,320 --> 00:11:16,320 Of the 21 items, 16 were filed just a few days prior to Christmas and had objection 180 00:11:16,320 --> 00:11:21,320 deadlines of today, just a few days after New Year's, although the debtors have agreed 181 00:11:21,320 --> 00:11:28,320 to extend our objection deadline to this Friday, and I believe the same for the committee. 182 00:11:28,320 --> 00:11:34,320 From our office's standpoint, to address such a large number of items over the holidays, 183 00:11:34,320 --> 00:11:40,320 vacations had to be canceled, but it was still a large number of items, a large number of 184 00:11:40,320 --> 00:11:45,320 matters to deal with in a very short period of time over the holidays. 185 00:11:45,320 --> 00:11:51,320 So we have sent a lot of questions and comments to debtors' council about these many motions 186 00:11:51,320 --> 00:11:53,320 and applications. 187 00:11:53,320 --> 00:11:58,320 We have received responses to some of those, but not to others. 188 00:11:58,320 --> 00:12:03,320 We are, with respect to the information we have received, and we do certainly appreciate 189 00:12:03,320 --> 00:12:06,320 the debtors providing this information. 190 00:12:06,320 --> 00:12:12,320 Some of it was quite extensive, but we are still digesting it, and we may have follow-up 191 00:12:12,320 --> 00:12:17,320 questions, and we will be asking for supplemental disclosures to be filed with respect to certain 192 00:12:17,320 --> 00:12:24,320 of the professionals, and we may also be filing objections regarding some of the retentions. 193 00:12:24,320 --> 00:12:26,320 In light of this situation, the U.S. 194 00:12:26,320 --> 00:12:32,320 Trustee is asking for a continuance of five of the retention applications and an 195 00:12:32,320 --> 00:12:34,320 adjournment of the hearing. 196 00:12:34,320 --> 00:12:43,320 Those five are Sullivan and Cromwell, Wayne Emanuel, Alex Partners, Alvarez and Marcel, 197 00:12:43,320 --> 00:12:46,320 and Pirella, the investment banker. 198 00:12:46,320 --> 00:12:50,320 There would be no prejudice to these professionals, since all retention applications seek 199 00:12:50,320 --> 00:12:52,320 non-proton relief, and the U.S. 200 00:12:52,320 --> 00:12:56,320 Trustee will not be objecting to non-proton relief. 201 00:12:56,320 --> 00:13:03,320 The additional time would also allow us to hopefully resolve a number of open issues 202 00:13:03,320 --> 00:13:08,320 and therefore limit what we have to bring before the court. 203 00:13:08,320 --> 00:13:15,320 And in this case, Your Honor may be aware, the debtors have sought to have a four-month 204 00:13:15,320 --> 00:13:21,320 extension of the time to file their schedules and statements and rule 2015.3A reports. 205 00:13:21,320 --> 00:13:26,320 They have also yet to file any monthly operating reports. 206 00:13:26,320 --> 00:13:31,320 The first one is already past due, and they've indicated they're seeking to file those 207 00:13:31,320 --> 00:13:33,320 reports at the end of March. 208 00:13:33,320 --> 00:13:38,320 And we certainly understand that the debtors have a lot of pressures on them with respect 209 00:13:38,320 --> 00:13:44,320 to these very important disclosure documents, but at the same time they want to move quickly 210 00:13:44,320 --> 00:13:48,320 on a large number of retentions and motions and starting bid procedures. 211 00:13:48,320 --> 00:13:54,320 So in light of all of that, we would ask to have that additional time with respect to 212 00:13:54,320 --> 00:13:59,320 the five particular retention applications I mentioned, and we certainly appreciate the 213 00:13:59,320 --> 00:14:01,320 efforts and consideration of our request. 214 00:14:01,320 --> 00:14:02,320 Thank you, Your Honor. 215 00:14:02,320 --> 00:14:03,320 MR. 216 00:14:03,320 --> 00:14:04,320 HOOKS. 217 00:14:04,320 --> 00:14:05,320 Anyone object to pushing those off? 218 00:14:05,320 --> 00:14:06,320 MR. 219 00:14:06,320 --> 00:14:07,320 KING. 220 00:14:07,320 --> 00:14:12,320 Your Honor, from the debtors, I'd like to see the podium to my colleague, Alexa Cransey. 221 00:14:12,320 --> 00:14:16,320 I think the debtors do have an objection to moving it off. 222 00:14:16,320 --> 00:14:17,320 Thank you. 223 00:14:17,320 --> 00:14:18,320 MS. 224 00:14:18,320 --> 00:14:19,320 CRANSLEY. 225 00:14:19,320 --> 00:14:21,320 Good afternoon, Your Honor. 226 00:14:21,320 --> 00:14:27,320 For the record, Alexa Cransey from Sullivan Crown Wall proposed counsel for the debtors. 227 00:14:27,320 --> 00:14:30,180 And Your Honor, we echo Ms. Sarkeesian's comments. 228 00:14:30,180 --> 00:14:35,880 We have been working very closely with her and responding, written and orally, to questions 229 00:14:35,880 --> 00:14:38,680 and comments that she has received. 230 00:14:38,680 --> 00:14:42,500 With respect to Sullivan and Crown Wall, we have now gone through two rounds of comments, 231 00:14:42,500 --> 00:14:47,000 and we submit that with another week remaining between now and next week's hearing, that 232 00:14:47,000 --> 00:14:51,060 the debtors are ready to proceed, and we are willing to work with Ms. Sarkeesian on any 233 00:14:51,060 --> 00:14:56,100 additional questions that she has and on a supplemental declaration to include additional 234 00:14:56,100 --> 00:14:58,400 disclosures as necessary. 235 00:14:58,400 --> 00:15:01,160 This is likewise true for the other professionals that were named. 236 00:15:01,160 --> 00:15:06,300 We have been responsive to the various questions and comments on the proposed forms of order. 237 00:15:06,300 --> 00:15:11,760 We are amenable to working with Ms. Sarkeesian on extending objection deadlines and working 238 00:15:11,760 --> 00:15:13,800 with her with respect to those. 239 00:15:13,800 --> 00:15:18,360 But given the size of this case and the importance of the work that has been done by the professionals, 240 00:15:18,360 --> 00:15:23,600 the debtors respect that we continue and proceed with these retention applications next Wednesday. 241 00:15:23,600 --> 00:15:31,120 Well, Ms. Sarkeesian, are there any of the five you are requesting that you are anticipating 242 00:15:31,120 --> 00:15:34,520 you might object to the retention? 243 00:15:34,520 --> 00:15:46,480 Well, Your Honor, we do have one sort of overarching objection which relates to certain professionals 244 00:15:46,480 --> 00:15:53,520 that are being retained to conduct investigations of the kind that we believe would be appropriate 245 00:15:53,520 --> 00:15:57,800 and can only be performed, frankly, by an examiner. 246 00:15:57,800 --> 00:15:59,800 So we would have that objection. 247 00:15:59,800 --> 00:16:09,400 With respect to other more, I would say granular details, again, we are still digesting. 248 00:16:09,400 --> 00:16:13,040 We haven't gotten back responses to all of our requests. 249 00:16:13,040 --> 00:16:16,860 I don't believe we have gotten anything on Pirella. 250 00:16:16,860 --> 00:16:21,680 We have gotten responses on the others, but we have to digest the information. 251 00:16:21,680 --> 00:16:26,960 And so I can't say at this point in time whether we would have other objections. 252 00:16:26,960 --> 00:16:31,600 Again, we are trying to work through this material, but it's a lot. 253 00:16:31,600 --> 00:16:36,840 And in addition to this five, there's a lot of other things we think we can work out. 254 00:16:36,840 --> 00:16:41,080 And with respect to extending the objection deadline, I certainly appreciate a further 255 00:16:41,080 --> 00:16:42,080 extension. 256 00:16:42,080 --> 00:16:45,640 I think the difficulty comes with the hearings on Wednesday. 257 00:16:45,640 --> 00:16:46,640 The agenda is due on Monday. 258 00:16:46,640 --> 00:16:53,560 Any reply that the debtors would have would actually be due on Sunday, I believe, at 4 259 00:16:53,560 --> 00:16:54,560 p.m. 260 00:16:54,560 --> 00:17:00,800 So there's not a lot of wiggle room for further extensions unless the debtors are willing 261 00:17:00,800 --> 00:17:09,280 to not file a reply or if the court is willing to have items being filed after the agenda. 262 00:17:09,280 --> 00:17:17,560 All right, well, I'm sympathetic to the fact that while debtors have a lot of resources 263 00:17:17,560 --> 00:17:24,320 and a lot of lawyers to produce these motions, the U.S. Trustee's office has more limited 264 00:17:24,320 --> 00:17:25,320 resources available to it. 265 00:17:25,320 --> 00:17:38,760 And given that there are 21 motions on for the 11th, and by the way, I have another hearing, 266 00:17:38,760 --> 00:17:44,640 a contested oral argument on a motion to dismiss at 2 o'clock that day. 267 00:17:44,640 --> 00:17:47,640 So my time is going to be implicated as well. 268 00:17:47,640 --> 00:17:57,400 So I'm going to grant the motion to move those five retention application hearings 269 00:17:57,400 --> 00:17:58,400 to. 270 00:17:58,400 --> 00:18:09,080 It looks like I have a time blocked out at 10 a.m. on the 20th for a motion filed by 271 00:18:09,080 --> 00:18:12,800 BlockFi, a stay motion. 272 00:18:12,800 --> 00:18:15,120 We can hear those retention applications at that time. 273 00:18:15,120 --> 00:18:22,520 That gives Ms. Sarkeesian a little more than another extra week to be able to address those 274 00:18:22,520 --> 00:18:23,520 five retention applications. 275 00:18:23,520 --> 00:18:24,520 Thank you, Your Honor. 276 00:18:24,520 --> 00:18:25,520 That's greatly appreciated. 277 00:18:25,520 --> 00:18:33,160 I think that that will absolutely be enough time for us. 278 00:18:33,160 --> 00:18:38,120 I guess the only thing I would ask is should we set the objection deadline now or is that 279 00:18:38,120 --> 00:18:40,800 something you would like us to work out with debtors' counsel? 280 00:18:40,800 --> 00:18:45,120 Why don't you try and work it out and see if you can come to an agreement on that? 281 00:18:45,120 --> 00:18:46,120 I'm sure we can. 282 00:18:46,120 --> 00:18:48,000 Debtors' counsel has been very cooperative. 283 00:18:48,000 --> 00:18:52,520 I certainly do not want to imply in any way otherwise. 284 00:18:52,520 --> 00:18:54,280 And we do appreciate the additional time. 285 00:18:54,280 --> 00:18:58,440 I think we will be able to use that to really limit the issues that we will be removing 286 00:18:58,440 --> 00:18:59,440 before the court. 287 00:18:59,440 --> 00:19:00,440 Thank you, Your Honor. 288 00:19:00,440 --> 00:19:01,440 All right. 289 00:19:01,440 --> 00:19:02,440 Thank you. 290 00:19:02,440 --> 00:19:08,160 Anything else for Ms. Sarkeesian on the, from your office on scheduling? 291 00:19:08,160 --> 00:19:09,160 No, Your Honor. 292 00:19:09,160 --> 00:19:10,160 That's it. 293 00:19:10,160 --> 00:19:11,160 Okay. 294 00:19:11,160 --> 00:19:12,160 Thank you. 295 00:19:12,160 --> 00:19:13,160 All right. 296 00:19:13,160 --> 00:19:16,160 Do we have any other scheduling issues then? 297 00:19:16,160 --> 00:19:21,640 Did we take care of everything? 298 00:19:21,640 --> 00:19:22,640 Your Honor. 299 00:19:22,640 --> 00:19:29,440 Sorry, Adam Landis here from Landis Rathlin Cobb, Delaware counsel to the debtors, proposed 300 00:19:29,440 --> 00:19:31,200 Delaware counsel to the debtors. 301 00:19:31,200 --> 00:19:37,360 I'm jumping in because I have gotten a message from a Department of Justice attorney, Seth 302 00:19:37,360 --> 00:19:43,280 Shapiro, who's on and has his hand raised and is trying to make a statement or to address 303 00:19:43,280 --> 00:19:44,920 the court and he can't jump in. 304 00:19:44,920 --> 00:19:45,920 So I just wanted to do that. 305 00:19:45,920 --> 00:19:46,920 Yes, I do see it now. 306 00:19:46,920 --> 00:19:47,920 As convenience to him in the court. 307 00:19:47,920 --> 00:19:48,920 Go ahead, Mr. Shapiro. 308 00:19:48,920 --> 00:19:49,920 You can turn your camera on as well. 309 00:19:49,920 --> 00:19:52,920 Thank you, Your Honor. 310 00:19:52,920 --> 00:20:04,800 I'm trying to turn the camera on, but for some reason it says that the host has disabled 311 00:20:04,800 --> 00:20:05,800 it. 312 00:20:05,800 --> 00:20:10,480 Well, I did turn you off because we had a bunch of people had the cameras on at the 313 00:20:10,480 --> 00:20:13,480 beginning of the hearing, but we'll see if we can get you turned back on. 314 00:20:13,480 --> 00:20:14,480 But if not, go ahead in the meantime. 315 00:20:14,480 --> 00:20:15,480 I can hear you. 316 00:20:15,480 --> 00:20:16,480 Okay. 317 00:20:16,480 --> 00:20:17,480 Yes. 318 00:20:17,480 --> 00:20:18,480 Yes, Your Honor. 319 00:20:18,480 --> 00:20:20,120 And thank you for hearing me. 320 00:20:20,120 --> 00:20:27,600 I'm appearing on behalf of the criminal prosecutors for the United States, both in the Southern 321 00:20:27,600 --> 00:20:32,360 District of New York and the criminal division, and we wanted the court to know that connection 322 00:20:32,360 --> 00:20:38,520 with the in the FTX digital case and connection with the JPL's motion for provisional relief 323 00:20:38,520 --> 00:20:40,840 that certain assets have been seized. 324 00:20:40,840 --> 00:20:45,240 We didn't want the court to just read that in the papers that were filed by Silvergate 325 00:20:45,240 --> 00:20:51,760 and Moonstone, so if Your Honor has any questions about the accounts or cryptocurrency that's 326 00:20:51,760 --> 00:20:54,320 been seized, please certainly let us know. 327 00:20:54,320 --> 00:20:59,120 We're trying to work things out with the parties, but if we can't, those matters will be heard 328 00:20:59,120 --> 00:21:00,660 at a later date. 329 00:21:00,660 --> 00:21:04,240 There is another scheduling matter as well in connection with the FTX trading matter 330 00:21:04,240 --> 00:21:07,360 that's on the court's docket for January 20th. 331 00:21:07,360 --> 00:21:13,720 That stay motion relates to an adversary proceeding filed in the Block 5 bankruptcy proceeding 332 00:21:13,720 --> 00:21:19,680 in New Jersey related to Robin Hood shares, which the federal government has also seized 333 00:21:19,680 --> 00:21:24,680 or is in the process of seizing, and we wanted Your Honor to know about that as well. 334 00:21:24,680 --> 00:21:28,920 We need to believe that these assets are not property of the bankruptcy estate or that 335 00:21:28,920 --> 00:21:37,160 they fall within the exceptions under sections 362B1 and or B4 of the bankruptcy code. 336 00:21:37,160 --> 00:21:40,600 So we can address those issues at a later date, but we did want the court to know about 337 00:21:40,600 --> 00:21:41,600 those seizures. 338 00:21:41,600 --> 00:21:49,480 Okay, what, which, I saw, I did see one pleading where one of the banks indicated that the 339 00:21:49,480 --> 00:21:51,080 funds had been seized. 340 00:21:51,080 --> 00:21:53,760 How many banks are there and which ones are they in? 341 00:21:53,760 --> 00:21:58,920 Have they all been seized at this point, the ones that were subject to the motion? 342 00:21:58,920 --> 00:22:02,480 The ones that were subject to the motion that had money in them, Your Honor, we believe 343 00:22:02,480 --> 00:22:07,760 those accounts have all been seized and all the money related to those accounts either 344 00:22:07,760 --> 00:22:11,920 has been seized or is in the process of seizure. 345 00:22:11,920 --> 00:22:15,360 Of course, that's not the end of the story. 346 00:22:15,360 --> 00:22:20,000 There of course would be a criminal and or civil asset forfeiture proceeding at some 347 00:22:20,000 --> 00:22:26,320 point down the line in the Southern District of New York to which entities could file claims. 348 00:22:26,320 --> 00:22:31,000 So we're in the process of speaking with the parties about that, about where those matters 349 00:22:31,000 --> 00:22:32,000 should be adjudicated. 350 00:22:32,000 --> 00:22:37,080 We're trying to work out an agreement, but if we can't, ultimately there will be a criminal 351 00:22:37,080 --> 00:22:42,280 and or civil asset forfeiture proceeding in the Southern District of New York. 352 00:22:42,280 --> 00:22:43,280 Thank you. 353 00:22:43,280 --> 00:22:46,280 I appreciate that, Mr. Chair. 354 00:22:46,280 --> 00:22:47,280 Okay. 355 00:22:47,280 --> 00:22:48,280 All right. 356 00:22:48,280 --> 00:22:52,120 Any other, Mr. Davidoff? 357 00:22:52,120 --> 00:22:53,120 Thank you, Your Honor. 358 00:22:53,120 --> 00:22:54,120 Good afternoon. 359 00:22:54,120 --> 00:22:57,320 Brian Davidoff from a law firm Greenberg, Lascaux in Los Angeles. 360 00:22:57,320 --> 00:23:04,000 Your Honor, I do see on the agenda for hearing today is scheduling on the motion that my 361 00:23:04,000 --> 00:23:09,800 client had filed North America League of Legends Championship Series, which is operated by 362 00:23:09,800 --> 00:23:11,440 Riot Games. 363 00:23:11,440 --> 00:23:14,200 That hearing is currently scheduled on the 11th. 364 00:23:14,200 --> 00:23:19,680 I certainly note that Your Honor has a number of matters scheduled for that day. 365 00:23:19,680 --> 00:23:26,800 Your Honor, that motion requests relief from stay or alternatively to compel the debtors 366 00:23:26,800 --> 00:23:29,480 to reject the agreement. 367 00:23:29,480 --> 00:23:37,520 The debtors separately had filed a motion to reject contracts, which they have scheduled 368 00:23:37,520 --> 00:23:39,720 for February 8th. 369 00:23:39,720 --> 00:23:49,240 I've had communications with Ms. Cranesley in an effort to get a stipulation whereby 370 00:23:49,240 --> 00:23:55,640 our motion would be granted since both parties are looking for the same result, that is, 371 00:23:55,640 --> 00:23:58,700 for rejection of the agreement. 372 00:23:58,700 --> 00:24:05,120 We would also agree with the debtors which they have requested in their motion that the 373 00:24:05,120 --> 00:24:11,440 rejection is effective December 30th, which is when they filed their motion. 374 00:24:11,440 --> 00:24:16,600 Ms. Cranesley has indicated that they wanted to wait until after the objection deadline 375 00:24:16,600 --> 00:24:25,760 to their motion, which I believe is January 13th. 376 00:24:25,760 --> 00:24:31,160 The objection deadline to our motion is scheduled for today. 377 00:24:31,160 --> 00:24:36,000 And so what I was hoping that we could discuss with Your Honor is simply a stipulation with 378 00:24:36,000 --> 00:24:41,080 the debtors whereby they stipulate to the relief in our motion and we resolve this matter 379 00:24:41,080 --> 00:24:46,080 entirely both for January 11th and February 8th. 380 00:24:46,080 --> 00:24:48,080 Ms. Cranesley? 381 00:24:48,080 --> 00:24:51,800 Thank you, Your Honor. 382 00:24:51,800 --> 00:24:56,780 We had understood from your chambers that Mr. Davidoff's client's motion is not being 383 00:24:56,780 --> 00:24:59,480 scheduled to be heard on January 11th. 384 00:24:59,480 --> 00:25:02,520 We agree that their objection deadline is in fact today. 385 00:25:02,520 --> 00:25:07,880 Our position, as Mr. Davidoff had articulated, is our – the objection deadline with respect 386 00:25:07,880 --> 00:25:11,400 to our motion is next Friday, January 13th. 387 00:25:11,400 --> 00:25:16,000 So we would work with Mr. Davidoff in the meantime on a mutual stipulation to resolve 388 00:25:16,000 --> 00:25:17,000 the issues. 389 00:25:17,000 --> 00:25:21,160 But we believe we should wait until the passage of the objection deadline for our motion 390 00:25:21,160 --> 00:25:26,000 before we put that stipulation on file in case there are any issues or objections raised 391 00:25:26,000 --> 00:25:27,000 by any parties in interest. 392 00:25:27,000 --> 00:25:28,000 Well, I think that's right. 393 00:25:28,000 --> 00:25:29,000 I mean, the motion was set on a regular notice. 394 00:25:29,000 --> 00:25:30,000 There was no request for a shorter notice on that motion. 395 00:25:30,000 --> 00:25:31,000 And while it's probably unlikely that anyone else is going to object, I do need to leave 396 00:25:31,000 --> 00:25:32,000 it open to see if somebody does. 397 00:25:32,000 --> 00:25:33,000 I mean, we're only talking about a few days here, Mr. Davidoff. 398 00:25:33,000 --> 00:25:34,000 If you wait until the 13th, I think we'll be able to get a little bit of a better understanding 399 00:25:34,000 --> 00:25:35,000 of the motion. 400 00:25:35,000 --> 00:25:36,000 I think that's right. 401 00:25:36,000 --> 00:25:37,000 I think that's right. 402 00:25:37,000 --> 00:25:38,000 I think that's right. 403 00:25:38,000 --> 00:25:39,000 I think that's right. 404 00:25:39,000 --> 00:25:40,000 I think that's right. 405 00:25:40,000 --> 00:25:41,000 I think that's right. 406 00:25:41,000 --> 00:25:42,000 I think that's right. 407 00:25:42,000 --> 00:25:43,000 I think that's right. 408 00:25:43,000 --> 00:25:44,000 I think that's right. 409 00:25:44,000 --> 00:25:51,480 I mean, we're only talking about a few days here, Mr. Davidoff. 410 00:25:51,480 --> 00:25:52,480 If you wait until the 13th, then there's no objection. 411 00:25:52,480 --> 00:25:53,480 It sounds like the debtors are willing to enter into a stipulation that could be filed. 412 00:25:53,480 --> 00:25:54,480 Well, the 16th is a holiday. 413 00:25:54,480 --> 00:25:55,480 This court will be closed, but it could be entered on the 17th if there's no objection. 414 00:25:55,480 --> 00:25:56,480 Your Honor, I appreciate that, and I do recognize it's merely a matter of a few days. 415 00:25:56,480 --> 00:25:59,480 I did want to mention to the court that every day in January is an important day for my 416 00:25:59,480 --> 00:26:00,480 client because the debtors are willing to enter into a stipulation that could be filed. 417 00:26:00,480 --> 00:26:01,480 I think that's right. 418 00:26:01,480 --> 00:26:02,480 I think that's right. 419 00:26:02,480 --> 00:26:03,480 I think that's right. 420 00:26:03,480 --> 00:26:04,480 I think that's right. 421 00:26:04,480 --> 00:26:05,480 I think that's right. 422 00:26:05,480 --> 00:26:06,480 I think that's right. 423 00:26:06,480 --> 00:26:07,480 I think that's right. 424 00:26:07,480 --> 00:26:08,480 I think that's right. 425 00:26:08,480 --> 00:26:15,480 I think that's right. 426 00:26:15,480 --> 00:26:24,480 I think that's right. 427 00:26:24,480 --> 00:26:39,480 I think that's right. 428 00:26:39,480 --> 00:26:58,480 I think that's right. 429 00:26:58,480 --> 00:27:13,480 I think that's right. 430 00:27:13,480 --> 00:27:28,480 I think that's right. 431 00:27:28,480 --> 00:27:43,480 I think that's right. 432 00:27:43,480 --> 00:27:58,480 I think that's right. 433 00:27:58,480 --> 00:28:13,480 I think that's right. 434 00:28:13,480 --> 00:28:28,480 I think that's right. 435 00:28:28,480 --> 00:28:43,480 I think that's right. 436 00:28:43,480 --> 00:28:58,480 I think that's right. 437 00:28:58,480 --> 00:29:13,480 I think that's right. 438 00:29:13,480 --> 00:29:28,480 I think that's right. 439 00:29:28,480 --> 00:29:43,480 I think that's right. 440 00:29:43,480 --> 00:29:58,480 I think that's right. 441 00:29:58,480 --> 00:30:13,480 I think that's right. 442 00:30:13,480 --> 00:30:28,480 I think that's right. 443 00:30:28,480 --> 00:30:43,480 I think that's right. 444 00:30:43,480 --> 00:30:58,480 I think that's right. 445 00:30:58,480 --> 00:31:13,480 I think that's right. 446 00:31:13,480 --> 00:31:28,480 I think that's right. 447 00:31:28,480 --> 00:31:31,480 I think that's right. 448 00:31:31,480 --> 00:31:44,480 I think that's right. 449 00:31:44,480 --> 00:32:12,480 I think that's right. 450 00:32:12,480 --> 00:32:24,480 I think that's right. 451 00:32:24,480 --> 00:32:30,480 You're the quickie subject? 452 00:32:30,480 --> 00:32:34,880 has given us until January 12th to respond to their stay motion. 453 00:32:34,880 --> 00:32:36,800 And the provisional liquidators have also 454 00:32:36,800 --> 00:32:40,480 extended our deadline to a date to be decided. 455 00:32:40,480 --> 00:32:42,800 So I just wanted to make sure that's clear on the record. 456 00:32:42,800 --> 00:32:47,520 And for the court's benefit, we will file a notice of seizure 457 00:32:47,520 --> 00:32:50,560 so that the court is aware and has something in the docket 458 00:32:50,560 --> 00:32:53,920 that shows what's actually been seized by the US government 459 00:32:53,920 --> 00:32:56,960 so that if we don't end up resolving it, 460 00:32:56,960 --> 00:32:59,040 it'll be clear for purposes of litigation 461 00:32:59,040 --> 00:33:01,200 what is actually in the government's possession. 462 00:33:01,200 --> 00:33:02,080 Thank you. 463 00:33:02,080 --> 00:33:04,000 Thank you, Mr. Shapiro. 464 00:33:04,000 --> 00:33:04,480 All right. 465 00:33:04,480 --> 00:33:05,600 Well, thank you all very much. 466 00:33:05,600 --> 00:33:06,720 I appreciate it. 467 00:33:06,720 --> 00:33:08,000 I think it was productive. 468 00:33:08,000 --> 00:33:09,600 I'm glad we had this call. 469 00:33:09,600 --> 00:33:12,080 I'm glad to hear that the parties are still 470 00:33:12,080 --> 00:33:14,960 working towards a resolution of the issues. 471 00:33:14,960 --> 00:33:18,720 And hopefully, we'll be able to do this in a cooperative way 472 00:33:18,720 --> 00:33:22,080 and avoid having to have a hearing later on. 473 00:33:22,080 --> 00:33:23,680 So with that, we are adjourned. 474 00:33:23,680 --> 00:33:25,200 Thank you all very much. 475 00:33:25,200 --> 00:33:29,360 Thank you, Ryan.