U.S. Trustee Has Filed An Objection to The Planned Sale Of Assets By FTX
According to a court filing, on Saturday, a U.S. Trustee filed an objection to the bankruptcy crypto exchange FTX’s plans to sell its digital currency futures and clearinghouse LedgerX, as well as its units in Europe and Japan.
Valentin
March 11, 2023
Reuters recently reported that FTX, a crypto exchange that filed for bankruptcy protection in November, plans to sell its units LedgerX, Embed, FTX Japan, and FTX Europe. However, the U.S. Trustee, Andrew Vara, has filed an objection calling for an independent investigation before the sale of these units, stating that the companies may have information related to the bankruptcy of FTX.
The objection also stated that the sale of potentially valuable causes of action against the company’s directors, officers, and employees should not be allowed until there has been a full and independent investigation into any wrongdoing.
To be precise, the filing states that:
“The sale of potentially valuable causes of action against the Debtors’ directors, officers and employees, or any other person or entity, should not be permitted until there has been a full and independent investigation into all persons and entities that may have been involved in any malfeasance, negligence or other actionable conduct.”
On Tuesday, FTX founder Sam Bankman-Fried pleaded not guilty to criminal charges that he cheated investors and caused billions of dollars in losses in what prosecutors have called an “epic” fraud
According to a court filing last month, FTX claimed that the companies it plans to sell, including LedgerX, Embed, FTX Japan, and FTX Europe, are relatively independent from the main FTX group, with their own separate management teams and segregated customer accounts.
Former FTX Top Lawyer Helped U.S. Authorities in SBF Case: Reuters
Reuters reported that former top lawyer for FTX, Daniel Friedberg, has reportedly given information to US prosecutors as they investigate the crypto firm’s collapse. Friedberg is said to have provided details about the company, as well as information on the activities of FTX founder Sam Bankman-Fried and his hedge fund Alameda Research, in a November 22 meeting with investigators from various US agencies.