Following a ruling by a federal appeals court in Philadelphia, an independent examiner will be appointed to scrutinize the collapse of FTX, a cryptocurrency exchange.

Federal Court Orders Appointment of Examiner in FTX Case

The Associated Press reported that the appeals court reversed a ruling by US bankruptcy judge John Dorsey, who had denied a trustee’s request for an independent examiner. The trustee’s request was dismissed in February last year, but the appeals court has now mandated an independent scrutiny of FTX’s bankruptcy case.

FTX had argued against an examiner, citing duplication of ongoing investigations and high costs. However, the appeals court agreed with the bankruptcy trustee’s position, noting that FTX’s collapse following allegations of massive fraud warrants an independent review.

The founder and former CEO of FTX, Sam Bankman-Fried, was found guilty on all charges, including fraud, and is awaiting sentencing scheduled for March 2024. US prosecutors have hinted at not pursuing a second trial for Bankman-Fried.

FAQs

What prompted the appeals court to order an independent scrutiny of FTX’s bankruptcy case?

The appeals court mandated an independent examiner to scrutinize FTX’s collapse following allegations of massive fraud.

When is Sam Bankman-Fried, the founder and former CEO of FTX, scheduled for sentencing?

His sentencing is scheduled for March 2024.

What did US prosecutors hint at regarding a second trial for Sam Bankman-Fried?

US prosecutors have hinted at not pursuing a second trial for Bankman-Fried.