FTX Bankruptcy Judge Considering Proposal To Open An Independent Investigation
Key Points: The FTX bankruptcy judge considers whether to open an investigation against crypto company FTX.
This proposal was previously made by the US Department of Justice in order to benefit customers and creditors.
However, FTX opposed the move, claiming that it was redundant and expensive.
According to Reuters, John Dorsey, a FTX bankruptcy judge will decide whether to conduct an independent investigation into FTX. The US Department of Justice’s bankruptcy watchdog previously urged John Dorsey not to appoint an investigator. The Justice Department’s proposal was supported by state securities regulators from Texas, Vermont, Wisconsin, and Wisconsin. They claimed that a neutral report would benefit customers and creditors. However, FTX stated that investigators would only duplicate work done by creditors and law enforcement agencies. This would increase costs as inspectors will only copy work done. Conducted by FTX, creditors, and law enforcement agencies… FTX’s creditors’ committee sided with FTX, saying the proposed investigation is redundant.Previously, FTX’s new CEO Ray, who worked with court-appointed examiners while leading Enron Corp and Residential Capital through bankruptcy, has said that those two cases cost a combined $150 million and provided “minimal” benefits to examiners, according to court filings.FTX’s new CEO John RayHowever, a demonstration from Celsius has shown that an independent investigation is a practical action. In the case of the individual bankruptcy of the crypto lending network Celsius Network, an assessor was appointed. He will investigate claims that Celsius is a Ponzi scheme that misleads customers about their security. Lower-level employees and companies that benefit from violations are also required to return. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuFoxyCoincu NewsTags: # Cryptocurrencies#MarketsBlockchaincryptoFTXFTX JudgeJohn RaySam Bankman-Fried