• FTX is facing an independent bankruptcy investigation over its collapse last year.
• U.S. Bankruptcy judge is considering approval of the investigation.
• FTX is opposed to the idea and demands a refund from former donor recipients.
The FTX exchange initially portrayed itself as a trustworthy platform, but eventually collapsed when news broke that its chief executive and founder Sam-Bankman Fried aka SBF was reportedly using customer funds inappropriately.
Independent Bankruptcy Investigation
A U.S. bankruptcy judge is looking to consider the approval of an independent bankruptcy investigation into the FTX collapse, revealed in a court hearing in Delaware which took place earlier today. Though the bankrupt company admitted its actions in the past calls for a probe relating to mismanagement and fraud, it is convinced that another round of investigation from an examiner will result in more cost and delay to the company’s aim to refund victims of the collapse. State securities regulators in Texas, Vermont, and Wisconsin backed the proposal and said an unprejudiced version of the report would be advantageous to both the creditors and customers.
FTX Opposes Investigation
As a response to the appointment of an independent examiner into its case, FTX condemned the idea saying approval of an investigator would only replicate work already being done by FTX, its creditors, and law enforcement agencies, according to Reuters. The official creditors’ committee supported FTX noting that considering another investigation is unnecessary and not needed at this time.
FTX Requests Refund
As cases of the FTX collapse continue to heat up, it was reported that FTX requested a refund from former donor recipients on Monday with a press release published on Sunday stating their intentions for such action.
The fallout from last year’s bankruptcy filings involving FTX continues as today’s court hearing has revealed plans for an independent examination into proceedings surrounding its collapse while simultaneously demanding refunds from former donors who received money prior to its downfall. It remains unclear whether or not these requests will be granted or if this latest development will have any impact on future procedures involving this particular case; however, one thing is certain: only time will tell what other surprises lay ahead for those involved with this tumultuous situation!