The US government’s push for an independent investigation into now-defunct crypto exchange FTX was sent to the US Third Circuit Court of Appeals on Tuesday.
rulingDelaware District Judge Collum F. The argument made by Connolly stated that it was not up to the judge to decide whether the case should be referred to the Court of Appeal.
This is true unless the US trustee – a branch of the Department of Justice (DOJ) – has asked for it, and does not involve a “question of fact”, the ruling said.
In this case, “the facts are not in dispute,” Judge Connolly wrote further, noting that “no one disputes that the trustee here requested an examiner.” […],
“Accordingly, I have no option but to accept the offer of the trustee,” the judge said.
The government’s push came after a group of senators, both Democratic and Republican, called for an investigation into FTX’s bankruptcy in January, arguing that a “thorough, objective investigation of the activities that led to the collapse of FTX” was needed. .
Calls for an investigation into the FTX collapse were made despite warnings from new FTX management that such an investigation could cost the bankrupt estate up to $100 million in legal fees.
It also comes despite the fact that bankruptcy judge John Dorsey in March declined to appoint an examiner to conduct the investigation on the grounds that it would be too costly and time-consuming.
FTX filed for bankruptcy in November of 2022, and the CEO of the exchange, Sam Bankman-Fried was arrested In December.
former exchange ceo could faces more than 100 years in prison If convicted of all the charges against him.