US DoJ Arm Corruption Requests Independent Investigator for FTX. The Bankruptcy Branch of the United States Department of Justice (DoJ) has requested an independent agency to investigate the collapse of the FTX Derivatives Exchange.
The defense believed that the case required an independent investigation, so they asked the bankruptcy judge to appoint an investigator to oversee the entire process. According to the lawyers for the bankruptcy arm of the DoJ, “The auditor can – and should – investigate serious allegations of fraud and fraud, dishonesty, incompetence, misconduct, and management” per FTX .
Other tasks of the designated auditor will be to investigate “the circumstances surrounding the failure of the debtors, the apparent change in the assets of exchange clients, and whether there are color statements and reasons for taking action to solve the losses”.
FTX needs more all the time
Since John Ray III succeeded Sam Bankman-Fried as CEO, he and his team have made significant contributions to the bankruptcy process. Clearly, the new CEO once announced that a serious investigation into the failure of FTX and the recovery of customers is one of his priorities. Ray III acknowledges the fact that the previous team left a big mess. Although he has been a prominent accountant for nearly four decades, Ray admits that “never in my career have I seen a complete failure of corporate governance.” and there is not enough detail of reliable financial information as it happened here.”
Andrew Vara, the US representative who serves on the bankruptcy court of the DoJ, acknowledged the role of Ray III in the court documents, but also pointed out that “the issues at stake here are very serious and very serious need to consider.” leave it. and internal audit.
On the other hand, other surprising revelations are coming. In total, the FTX Derivatives Exchange’s identified investors are about one million, with the top 50 holdings of more than $3 billion. Crypto exchanges that have not yet been paid are still facing a lot of scrutiny from different authorities.
Meanwhile, FTX Japan says it has come up with a big plan that will allow it to repay its customers. To achieve this, he decided to end the desertion.