US Government Appeals Bankruptcy Examiner Denial for FTX
• The U.S. government on Monday appealed a judicial decision not to appoint an independent examiner to look into the collapse of bankrupt crypto exchange FTX.
• A bipartisan group of U.S. senators had also called for an independent probe, despite warnings that it could cost as much as $100 million.
• On Feb. 15, however, the Delaware-based U.S. bankruptcy court’s Judge John Dorsey agreed with FTX’s new management that an independent examination would represent costly delay to any resolution of the case.
U.S Government Appeals Bankruptcy Examiner Denial
The U.S government has appealed a judicial decision not to appoint an independent examiner for the investigation into the collapse of crypto exchange FTX amid warnings that such a probe could cost up to $100 million dollars. The appeal comes after a bipartisan group of US senators called for an independent investigation into the matter and follows on from February 15th, when Delaware-based U.S Bankruptcy Court judge John Dorsey sided with FTX’s new management in ruling against such an examination due its potential for costly delays in resolving the case.
Calls For Independent Examination
The call for an independent examination has come from both US Senators and the US Trustee branch of the Department of Justice (DOJ). It is believed that such an inquiry could uncover if those responsible for mismanagement at FTX are still part of the company, which collapsed in April 2020 following accusations of fraud and other violations by its former CEO Sam Bankman-Fried and other members of his team..
Delays And Cost Implications
The proposed investigation has been met with resistance over fears that it will cause delays and incur large costs; similar investigations have already taken place elsewhere, notably in New York where cryptocurrency lender Celsius Network appointed a 500-page report four months after being appointed by a court there .
FTX Case Overview
FTX was first launched in 2018 by current CEO Sam Bankman-Fried and has since become one of the world’s leading crypto exchanges, boasting over $12 billion worth daily trading volume across more than 150 countries at its peak before collapsing amidst allegations around fraud and other violations from its former leadership team .
In light of these developments, it remains unclear how long it will take before a resolution is reached or whether or not any criminal charges will be brought against those involved in mismanagement at FTX as no further information regarding this matter has been released yet by either party involved–the DOJ or Bankman-Fried himself–at this time