Action download picture&mex media type picture&token 2 BosqWSEU 3 ejd 4 TI 2 F 34 aSJDP 2 atyImvrSv 5 CoSE 3 D 22 ndependent investigation into the collapse of FTX, said customers need a neutral party to investigate fraud, dishonesty, incompetence, misconduct and mismanagement. FTX has ousted founder Sam Bankman-Fried and new CEO John Ray, who was hired to lead the company through bankruptcy, said that investigating FTX's implosion and recovering customer assets are among his top priorities.
In a filing in Delaware bankruptcy court, Trustee said that it did not question Ray's competence or earnestness, but an independent investigation would carry more weight with FTX customers and allow Ray to devote more energy to stabilizing FTX's operations.
The questions at stake here are simply too large and too big.
The U.S. is important to be left to an internal investigation. Trustee Andrew Vara wrote in court papers.
Ray said that the lapses in oversight, security and corporate governance he identified were greater than in any other process he has managed as a bankruptcy specialist in his 40 years.
A neutral examiner would give more public and transparent findings than an internal review, the U.S. government said. Trustee wrote, which is especially important because of the wider implications that FTX's collapse may have for the industry, according to Vara.
After a week in which a possible merger with Binance failed, FTX founder Sam Bankman-Fried was faced with allegations that he had funneled customer deposits to FTX's affiliated trading firm, Alameda Research, and the exchange experienced withdrawals of $6 billion in just 72 hours.
Bankman- Fried said he was deeply sorry about what happened and acknowledged a massive failure of oversight of risk management, but he said he did not intentionally commingle FTX's user deposits with Alameda's trading activity.
In the bankruptcies of Celsius Network and Cred Inc., examiners have been appointed.