Hire a professional hacker here atTheHackersPro!
(Monday - Sunday)
Submit request

U.S. trustee objects to FTX’s plans of selling strategic assets

  • Home
  • Blog
  • Hacking
  • U.S. trustee objects to FTX’s plans of selling strategic assets
UK financial watchdog issues warning against crypto exchange FTX

A United States trustee filed a legal objection on Saturday to stop FTX’s plans to liquidate some of its installations and critical assets, including a clearing house LedgerX and its subsidiaries in Japan and Europe.

U.S. Trustee adds another court battle to FTX

FTX  is currently dealing with lawsuits after filing for Chapter 11 bankruptcy protection in November. As part of its plans to raise funds, FTX said it plans to sell some of its holdings and subsidiaries, including FTX registered in Europe and FTX Japan. 

Andrew Vara, a U.S. Trustee, is now interjecting, calling upon the jury to approve an independent investigation before the defunct exchange liquidates some of its units. Andrew’s argument joined the dots of FTX units having information linked to the loss of funds credited to Sam Bankman-Fried’s improper use of customer deposits.

His investigation policy demands thorough scrutiny of all officials and personnel who the trustee believes may have been linked to Sam Bankman-Fried’s fraud on customer funds. In his assessment, law enforcers will smoothly investigate FTX’s collapse if these assets remain under the company’s name. 

“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,” Andrew wrote on the court filing.

FTX had earlier stated that the companies it intended to sell are independent and are not financially related to the broader FTX group. According to the exchange, each company had separate customer accounts and different supervising teams.

Former FTX lawyer collaborates with law enforcement

SBF pleaded ‘not guilty’ to fraud charges after he was extradited to the U.S. for allegedly embezzling customer deposits and using them to fund his political ideologies and buy expensive and luxurious pieces of real estate in the Bahamas. 

SBF’s plea is ironic because his accomplices, Caroline Elisson and Garry Wang, pleaded guilty and offered to help U.S. investigators to complete investigations. 

In recent reports, former FTX lawyer Daniel Friedberg is reportedly helping in the investigations. Sources familiar with the scrutiny said the lawyer is not facing any criminal charges and is expected to appear in proceedings as a witness.

Follow Us on Google News

Leave A Comment

Professional hackers for hire at TheHackersPro

(Sat - Thursday)
(10am - 05 pm)

Subscribe to our newsletter

Sign up to receive latest news, updates, promotions, and special offers delivered directly to your inbox.
No, thanks