Push for Investigator Referred to Appeals Court – Crypto News – Crypto News
Connect with us
Breaking: New FTX CEO John J. Ray III Plans To Restart The Crypto Exchange Breaking: New FTX CEO John J. Ray III Plans To Restart The Crypto Exchange

Business

Push for Investigator Referred to Appeals Court – Crypto News

Published

2 years ago

on

In a crucial milestone in the aftermath of the FTX collapse, a Delaware District Judge has referred the case bordering on the appointment of an independent investigator to the US Third Circuit Court of Appeals.

Recognizing the importance of an impartial investigation, the government and a group of Senators initially came together to advocate for an independent inquiry into the bankruptcy of the insolvent FTX. This request came despite concerns raised by FTX’s new management about the potential financial burden.

They estimate that the probe could lead to approximately $100 million in legal expenses, which would be borne by the estate. However, in a Tuesday rulingDistrict Judge Colm F. Connolly emphasized that his decision to send the FTX case to a higher court was motivated by legal requirements.

Notably, the law compels judges to refer cases to higher courts if requested by the US Trustee, particularly in bankruptcy-related matters. Another critical factor in Judge Connolly’s decision to refer the case upward was the absence of factual disputes.

Furthermore, the ruling confirms that the debtor’s unsecured debts, excluding debts for goods, services, taxes, or those owed to an insider, exceed $5 million. These uncontested facts form the foundation of the case and underline the gravity of the financial situation. This inquiry focuses on whether the circumstances warrant an unbiased and impartial examination of the events leading to the bankruptcy.

Importance of an Independent Investigation into FTX Bankruptcy

The need for an independent investigation arises from the desire to ensure fairness, and transparency, and uncover any potential misconduct or mismanagement that may have contributed to the trading platform’s bankruptcy.

The investigator’s role would be to assess the events leading up to the collapse, evaluate the company’s internal operations, and determine any potential misconduct or mismanagement that may have contributed to the downfall.

By examining the legal question surrounding an independent investigation, Judge Connolly underscores the importance of a thorough and impartial examination of the FTX case.

Meanwhile, FTX bankruptcy lawyers have discovered $2.2 billion in crypto assets in FTX-linked wallets. Markedly, only $694 million of the $2.2 billion in total assets are liquid currencies like stablecoins, Bitcoin (BTC), and Ethereum (ETH).

Benjamin Godfrey is a blockchain enthusiast and journalist who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, LinkedIn

The content presented may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending