US Trustee Objects to FTX Asset Sales, Bankman Fried Pleads Not Guilty

• A U.S. Trustee has opposed FTX’s plans to sell its units in Europe and Japan.
• The US Trustee, Andrew Vara, requested an independent investigation into the sale of the units.
• Sam Bankman Fried, the founder of the exchange, entered a not-guilty plea to the criminal charges that he defrauded investors and caused billions of dollars in losses.

The troubled cryptocurrency exchange FTX recently filed for Chapter 11 bankruptcy protection, and was planning to market its LedgerX clearinghouse, futures contracts for digital currencies, and units throughout Europe and Japan. However, a U.S. Trustee has objected to FTX’s plans to sell its units, claiming that the companies might have information about FTX’s bankruptcy that could be useful to the case.

The U.S. Trustee, Andrew Vara, submitted a court filing demanding an independent investigation into the sale of the units. Vara’s filing stated that no sale of potentially valuable legal claims against the directors, officers and employees of the debtor, or any other person or entity, shall not be permitted until a full and independent investigation has been conducted into all persons and entities that may have been involved in any crime, negligence or other criminal conduct.

Meanwhile, Sam Bankman Fried, the founder of the exchange, entered a not-guilty plea to the criminal charges that he defrauded investors and caused billions of dollars in losses, what the prosecution called an „epic fraud,“ on Tuesday during the court hearing at the Manhattan federal court in New York City, U.S.

The case against Bankman Fried, which is being led by the U.S. Justice Department, is the first criminal prosecution in the U.S. of a cryptocurrency exchange executive. The indictment also alleges that he defrauded customers by misappropriating their funds and manipulating prices on the exchange. If convicted, Bankman Fried faces up to 45 years in prison.

The US Trustee’s objection to FTX’s proposed asset sales is the latest development in the ongoing case against Bankman Fried. It remains to be seen how the court will decide on the independent investigation into the sale of FTX’s units, and whether or not Bankman Fried will be found guilty of the criminal charges against him.

Dieser Beitrag wurde unter Allgemein veröffentlicht. Setze ein Lesezeichen auf den Permalink.