Objections to the sale of FTX assets
2023.01.08 02:21
Objections to the sale of FTX assets
Budrigannews.com – According to a court filing, plans by bankrupt crypto exchange FTX to sell its digital currency futures and clearinghouse LedgerX, as well as units in Japan and Europe, were objected to on Saturday by a U.S. Trustee.
Last month, FTX announced that it would be selling its LedgerX, Embed, FTX Japan, and FTX Europe businesses after filing for bankruptcy protection in November. In what prosecutors have described as an “epic” fraud, FTX founder Sam Bankman-Fried pleaded not guilty on Tuesday to criminal charges that he cheated investors and caused billions of dollars in losses.
In his filing, U.S. Trustee Andrew Vara argued that the businesses might have information about FTX’s bankruptcy and called for an independent investigation before the units were sold.
“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,” the filing stated, “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.”
In a court filing last month, FTX stated that the businesses it planned to sell are somewhat distinct from the broader FTX group, with their own distinct customer accounts and management teams.
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