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FTX News: Bankruptcy ridden cryptocurrency exchange, FTX that filled for US court protection might have a twist in the proceedings. In the latest developments, the U.S. Department of Justice’s bankruptcy authority has made consideration in front Bankruptcy judge that might stretch the investigation further.
FTX Bankruptcy Proceeding To Be Delayed?
As per reports, John Dorsey, a U.S Bankruptcy judge overseeing the FTX’s chapter 11 proceeding has been requested to appoint an independent examiner in the probe. Department of Justice’s bankruptcy watchdog mentioned that this is needed to check the allegations of fraud, misconduct, incompetence, and more.
The judge will be making its decision on this request on Monday. However, FTX has opposed this suggestion and called it wasteful and redundant. The crypto exchange mentioned that the appointed examiner would repeat the work implied by the law enforcement agency, FTX and its creditors.
The collapsed crypto exchange stated that this process will add a new review layer which only delays the proceedings and efforts put to work by FTX to repay its customers. Read More FTX News Here…
Will This Decision Benefit Creditors?
As per reports, FTX’s new boss, John Ray has tendered its support while working with the court appointed examiners. However, he also bought up added costs involved in the legal process. Ray stated that examiners cost around $150 million in the two running cases while it proved minimum benefits to creditors.
It is important to note that the creditors’ committee has supported the FTX opinion over the request calling it “redundant”. However, state securities watchdogs of several U.S. states backed the Justice Department’s consideration.
FTX is one of the major reasons behind the horrible collapse of the crypto market. The bankruptcy filling left around 9 million users empty handed.
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