Why Is FTX Dodging New Bankruptcy Probe?

Why Is FTX Repelling New Bankruptcy Investigation?

January 27, 2023 Story: Divya Sinha

As per the reports, FTX has repelled the US DOJ’s request for an independent investigation into the collapse.

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FTX cited the reason saying it has already launched an extensive investigation, including against the family of former FTX CEO Sam Bankman-Fried.

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In the court filing, FTX said that the DOJ's proposed review would only result in increased expenditures and delays for the bankruptcy process.

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FTX has admitted to "fraud, dishonesty, incompetence, misconduct, mismanagement, and misconduct" in its prior actions.

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However, it asserted that its new management, creditors, and law enforcement authorities are already looking into it.

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FTX has asked Judge John Dorsey to help it secure documents from SBF and others with information about FTX transactions that used misappropriated and stolen funds.

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FTX is also searching for information on political contributions related to SBF.

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