U.S. Office of Trustee within the Department of Justice has filed a motion requesting the appointment of an independent examiner to investigate the FTX cryptocurrency exchange’s collapse and subsequent bankruptcy. The motion cites the need for an impartial investigation into the “extraordinary collapse” of FTX, given the many parties involved in the case including the Bahamas and its Securities Commission, the U.S. Securities and Exchange Commission, the Department of Justice, and several U.S. state regulators.
FTX filed for Chapter 11 bankruptcy protection on November 11, 2022. Since then, several legal battles have broken out among the many parties looking to recover assets from FTX and prosecute potential crimes. The motion filed by the Department of Justice today says that the appointment of an independent examiner would be in the interests of FTX’s creditors and other interested parties.
The agency applauded the work of new FTX CEO John J. Ray—who replaced disgraced founder Sam Bankman-Fried—and FTX’s new management team, saying they have done a valuable job in untangling some of FTX’s issues. However, the Justice Department said that while it does not question the competence of Ray and his team, their goals may differ from those of other stakeholders. The agency says that an independent examiner would be neutral, and their findings would likely be more broadly accepted and credible than an investigation conducted by any stakeholders in the case.