{"id":1762001,"date":"2022-12-04T08:57:33","date_gmt":"2022-12-04T13:57:33","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1762001"},"modified":"2022-12-04T09:03:13","modified_gmt":"2022-12-04T14:03:13","slug":"doj-watchdog-urges-independent-probe-into-ftx-collapse","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/doj-watchdog-urges-independent-probe-into-ftx-collapse\/","title":{"rendered":"DOJ Watchdog Urges Independent Probe Into FTX Collapse"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdoj-watchdog-urges-independent-probe-into-ftx-collapse%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1762001&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A Department of Justice (DOJ) watchdog is seeking an independent examination into the collapse of cryptoexchange FTX, according to a recent court filing.<\/p>\n<p>The Justice Department is already investigating the exchange. The DOJ\u2019s U.S. Trustee for Regions Three and Nine now wants an independent examiner to be appointed by a bankruptcy court to look into any wrongdoings that may have led to the collapse.<\/p>\n<p>\u201cAn examiner could\u2014and should\u2014investigate the substantial and serious allegations of fraud, dishonesty, incompetence, misconduct, and mismanagement by the Debtors, the circumstances surrounding the Debtors\u2019 collapse, the apparent conversion of exchange customers\u2019 property, and whether colorable claims and causes of action exist to remedy losses,\u201d the <a href=\"https:\/\/www.coindesk.com\/policy\/2022\/12\/02\/us-justice-department-wants-ftx-fraud-allegations-to-be-investigated\/%5d\">filing<\/a> stated.<\/p>\n<p>FTX filed for bankruptcy in November after the company\u2019s balance sheet triggered concerns, leading to mass withdrawal of funds that pushed it into a liquidity crisis. The company has admitted that over a million creditors might be affected by the bankruptcy.<\/p>\n<p>One of the reasons that the DOJ watchdog is calling for a public examination is that the findings and conclusions of such an examination will be \u201cpublic and transparent.\u201d This is critical because of the wide implications that the exchange\u2019s collapse may have for the crypto industry, the filing stated.<\/p>\n<p>Like the bankruptcy cases of New Century Financial, Washington Mutual Bank, and Lehman, the FTX case is \u201cexactly\u201d the kind of case that requires an independent fiduciary to be appointed to investigate and report on the exchange\u2019s \u201cextraordinary collapse.\u201d<\/p>\n<h2>Role of New CEO<\/h2>\n<p><a href=\"https:\/\/www.theepochtimes.com\/t-sam-bankman-fried\">Sam Bankman-Fried<\/a>, FTX founder, resigned from his post as CEO following the crisis at the exchange. The job went to John Ray, an executive who specializes in such situations. Ray has shed light on the company\u2019s poor management.<\/p>\n<p>However, the filing insists that Ray\u2019s work is not enough. FTX\u2019s new management, led by Ray, has done \u201cvaluable preliminary work\u201d in untangling some of the issues faced by the company. But the questions at stake on the matter are \u201csimply too large and too important\u201d to be left for an internal investigation, the watchdog asserted.<\/p>\n<p>Ray\u2019s role in the FTX situation is only as a fiduciary for the Debtors\u2019 estates with objectives \u201cthat may not necessarily be aligned with those of all other interested parties.\u201d As an examiner will be neutral to all affected parties, its findings will likely enjoy \u201cbroader acceptance and credibility,\u201d it said.<\/p>\n<p>Meanwhile, Bankman-Fried\u2019s fortunes have significantly collapsed after FTX\u2019s fall. At one time, his wealth was estimated to be at $26.5 billion. In a recent <a href=\"https:\/\/www.theepochtimes.com\/sam-bankman-fried-says-fortune-has-dwindled-to-100000-after-ftx-collapse_4899683.html\">talk<\/a>, the former FTX CEO revealed that he only has $100,000 in personal wealth. Much of his wealth was tied to FTX.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-naveen-athrappully\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/NaveenAthrappully.jpg\" alt=\"Naveen Athrappully\" \/><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A Department of Justice (DOJ) watchdog is seeking an independent examination into the collapse of cryptoexchange FTX, according to a recent court filing.The Justice Department is already investigating the exchange.<\/p>\n","protected":false},"author":1,"featured_media":1695609,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1762001","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1762001","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1762001"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1762001\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1695609"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1762001"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1762001"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1762001"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}