Wednesday, March 22, 2023

FTX Objects to US DOJ’s Request for Individual Investigation

  • The US DOJ requested a new individual investigation regarding the allegations on FTX.
  • FTX refused to provide consent claiming that there already exists an elongated probe.
  • The company requested the US bankruptcy judge to help FTX to retrieve related documents from SBF.

According to the latest reports, the once prominent and now collapsed crypto exchange FTX objected to the request of the US Department of Justice. While the department requested an independent investigation on the ongoing condition and the allegations on FTX, the company refused to give consent claiming that the company is already under an elongated investigation that included even the family members of the company’s former CEO Sam Bankman-Fried.

Previously, in November 2022, FTX filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court in November, following which SBF stepped down from his position as the company CEO.

Significantly, regarding the current investigation, the company requested John Dorsey, the US Bankruptcy Judge who is in charge of the Chapter 11 proceedings, to help the company to retrieve its legal documents from SBF and related people. As per the words of executives from FTX, these people made illegal transactions, through which they amassed and used “misappropriated and stolen” funds.

It is revealed that the transactions included a $16.7 million Bahamian real estate purchase which is recorded under the name of SBF’s parents, Joseph Bankman and Barbara Fried.

Last Wednesday, FTX told in the court filing in Wilmington, Delaware, that the request of the Department Judge for the new investigation would only contribute to the further delay in the bankruptcy case. In addition, the investigation would make the company more debted.

Furthermore, the firm accepted that the company had a disgraceful past with “fraud, dishonesty, incompetence, misconduct, mismanagement, and irregularity”.

In addition, the company has also filed a new list of creditors in the bankruptcy court, proving that FTX owes a great amount of money to financial institutions and government agencies from different countries. Also, companies including Airbnb INC and Binance are expecting huge sums to be repaid by FTX.

  • The US DOJ requested a new individual investigation regarding the allegations on FTX.
  • FTX refused to provide consent claiming that there already exists an elongated probe.
  • The company requested the US bankruptcy judge to help FTX to retrieve related documents from SBF.

According to the latest reports, the once prominent and now collapsed crypto exchange FTX objected to the request of the US Department of Justice. While the department requested an independent investigation on the ongoing condition and the allegations on FTX, the company refused to give consent claiming that the company is already under an elongated investigation that included even the family members of the company’s former CEO Sam Bankman-Fried.

Previously, in November 2022, FTX filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court in November, following which SBF stepped down from his position as the company CEO.

Significantly, regarding the current investigation, the company requested John Dorsey, the US Bankruptcy Judge who is in charge of the Chapter 11 proceedings, to help the company to retrieve its legal documents from SBF and related people. As per the words of executives from FTX, these people made illegal transactions, through which they amassed and used “misappropriated and stolen” funds.

It is revealed that the transactions included a $16.7 million Bahamian real estate purchase which is recorded under the name of SBF’s parents, Joseph Bankman and Barbara Fried.

Last Wednesday, FTX told in the court filing in Wilmington, Delaware, that the request of the Department Judge for the new investigation would only contribute to the further delay in the bankruptcy case. In addition, the investigation would make the company more debted.

Furthermore, the firm accepted that the company had a disgraceful past with “fraud, dishonesty, incompetence, misconduct, mismanagement, and irregularity”.

In addition, the company has also filed a new list of creditors in the bankruptcy court, proving that FTX owes a great amount of money to financial institutions and government agencies from different countries. Also, companies including Airbnb INC and Binance are expecting huge sums to be repaid by FTX.

 

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