• FTX is facing an independent bankruptcy investigation in Delaware court.
• The exchange has condemned the idea and said approval of an investigator would only replicate work already being done by FTX, its creditors, and law enforcement agencies.
• State securities regulators are backing the proposal and say an unprejudiced version of the report would be beneficial to both creditors and customers.
FTX Collapse Impact
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 earlier today.
FTX Reacts To Independent Bankruptcy Investigation
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. Although FTX 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 refunding victims of its collapse. Meanwhile, official creditors’ committee supported the exchange noting that considering such investigation is unnecessary and not needed while state securities regulators from Texas, Vermont, and Wisconsin backed the proposal believing that an unprejudiced version of report will benefit all parties involved.
FTX Wants A Refund From Former Donors
With cases related to when FTX collapsed continuing to heat up, it appears that bankrupt firm may be feeling increasingly frustrated as everyone seems unresponsive towards their current situation. It was reported Monday that they requested a refund from former donor recipients with a press release stating “FTX Debtors are sending confidential messages to political figures, political action funds,” etc., asking for refunds or repayment terms after they had donated money during good times before their bankruptcy filing last year..
What Will Happen Next?
It remains unclear what will happen next with regards to this case but one thing is certain – The judge presiding over this case will take his time before making any decision about whether or not approve or deny FTC’s request for another investigation into this matter as well as other matters related it such as how much customer funds were used inappropriately if at all .Only time can tell what fate awaits FTC at this point but we hope justice ultimately prevails for all parties involved-both those affected by their fall as well as those who gave them money out charity prior this incident occurred..
Conclusion
The story of FTC’s collapse continues on even months after it initially took place with new developments emerging every single day which suggest just how deeply rooted some issues may have been within exchange itself prior it crashed down spectacularly last year affecting millions individuals globally . We only hope there’ll be closure regarding matter soon enough so everyone can move on eventually without having carry huge burden across long periods time .