US lawmakers call on court to approve 'independent examiner' in FTX bankruptcy case

A radical of 4 United States senators person criticized 1 of the instrumentality firms progressive successful the bankruptcy lawsuit of crypto speech FTX for conflicts of interest.

In a Jan. 9 missive to Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware, Senators John Hickenlooper, Thom Tillis, Elizabeth Warren, and Cynthia Lummis — a bipartisan radical — called connected the justice to o.k. a question appointing an autarkic examiner into FTX’s activities anterior to its illness successful November. The U.S. lawmakers said Sullivan & Cromwell, the instrumentality steadfast presently tasked with the investigation, had previously provided ineligible services to FTX and “one of its partners adjacent served arsenic FTX’s wide counsel” — a perceived struggle of involvement amid the firm’s bankruptcy proceedings.

“The harm FTX and different mismanaged integer plus firms person caused is considerable: they person destroyed the beingness savings of tens of thousands of customers successful the U.S. and each implicit the world,” said the letter. “We judge it is captious that a strong, objective, and disinterested examiner is appointed successful this lawsuit to behaviour a searching probe of FTX, FTX US and its related entities successful bid to uncover the facts needed to guarantee FTX’s customers – and the broader nationalist – that justness is served and to pass Congress’ information of aboriginal integer plus legislation.”

The senators added:

“Gven their longstanding ineligible enactment for FTX, [Sullivan & Cromwell] whitethorn good carnivore a measurement of work for the harm wrecked connected the company’s victims. Put bluntly, the steadfast is simply not successful a presumption to uncover the accusation needed to guarantee assurance successful immoderate probe oregon findings.”— Senator John Hickenlooper (@SenatorHick) January 10, 2023

FTX Group filed for Chapter 11 bankruptcy connected Nov. 11, and erstwhile CEO Sam Bankman-Fried was charged with 8 transgression counts successful national tribunal successful December. The adjacent nationalist proceeding successful FTX’s bankruptcy lawsuit is scheduled for Jan. 11, portion Bankman-Fried's proceedings is expected to commencement successful October.

Related: FTX erstwhile pb technologist successful talks with national prosecutors successful Bankman-Fried case

U.S. authorities person targeted assets antecedently controlled by FTX and its executives, with the Justice Department announcing connected Jan. 9 it had seized much than 55 cardinal shares of Robinhood and much than $20 cardinal successful U.S. currency arsenic portion of the lawsuit against Bankman-Fried. Bankman-Fried, BlockFi and FTX creditor Yonathan Ben Shimon had each made abstracted claims connected the assets.

Cointelegraph reached retired to Sullivan & Cromwell, but did not person a effect astatine the clip of publication.