Just-In: Judge Wants This Implication in FTX Bankruptcy Probe
FTX News: A bankrupt cryptocurrency exchange, FTX, which applied for US court protection, might be subject to a twist in the proceedings. The U.S. Department of Justice’s bankruptcy authority is now considering whether the investigation should be extended further.
According to reports, John Dorsey (a U.S Bankruptcy judge who oversees the FTX’s Chapter 11 proceeding) has been asked to appoint an outside examiner for the probe. The Department of Justice’s bankruptcy watchdog stated that this is necessary to verify the allegations of fraud and misconduct.
This request will be decided by the judge on Monday. FTX, however, has resisted this suggestion and called it redundant and wasteful. The crypto exchange stated that the appointed examiner would do the same work as FTX and its creditors.
The collapsed crypto exchange claimed that this new review layer will be added to the proceedings. This only delays the efforts of FTX to repay its customers. Read More FTX News
According to reports, John Ray, FTX’s new boss has offered support while working alongside the court-appointed examiners. He also incurred additional costs in the legal process. Ray stated that the cost of examiners in two cases was $150 million. However, it provided minimal benefits for creditors.
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