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The contagion of the FTX collapse is still ongoing despite its already significant impact on the industry. In today’s news, a U.S. bankruptcy judge is looking to consider the approval of an independent bankruptcy investigation into the FTX collapse. This was revealed in a court hearing in Delaware which took place earlier today.
Ftx is still one of the most studied companies of one of the many bankruptcy declarations made last year. While the exchange initially portrayed itself as a trustworthy platform, it eventually collapsed when news broke that its chief executive and founder Sam-Bankman Fried aka SBF was reportedly using customer funds inappropriately.
FTX opposes independent investigation into bankruptcies.
As a response to the appointment of an independent examiner into its case, FTX condemned the idea saying approval of an investigator would only replicate work already being done by FTX, its creditors, and law enforcement agencies, according to Reuters.
Though the bankrupt company admitted its actions in the past calls for a probe relating to mismanagement and fraud, it is convinced that another round of investigation from an examiner will result in more cost and delay to the company’s aim to refund victims of the collapse.
While the judge is still thinking about it, the ftx official creditors committee backed the exchange by noting that the investigation review is unnecessary and unnecessary. Also, securities regulatory authorities in Texas, vermont, Wisconsin supported the proposal and stated that a bias-free version of the report would benefit creditors and clients.
FTX is being pushed around, asking for a refund.
As cases of the FTX collapse continue to heat up, the bankrupt firm is beginning apparently annoyed as to why everyone including the people it once gave money to is now turning a blind eye to its current situation.
On Monday, it was reported that FTX requested a refund from former donor recipients. A press release published on Sunday noted, “FTX Debtors are sending confidential messages to political figures, political action funds, and other recipients of contributions that were made by or at the direction of the FTX Debtors, Samuel Bankman-Fried or other officers or principals of the FTX Debtors,” the press release read in part.
As reported by Bitcoinist citing an announcement, the recipients have until the end of this month to do (a refund) as requested or else the debtors “retain the right” to execute legal actions to compel payback, plus interest.
In particular, the news comes in response to the initial issue of FTX for repayment in December. In the past, creditors had determined that SBF had donated $93 million to political causes. Speaking of ftx, the native exchange token (ftt) that used to be a rival of native tokens in other exchanges, has so far dropped by more than 90% since the collapse.
At the time of writing, the chip is currently in a downward trend trading below $2 following the fall of its $25 price tag range last year.
