Objections to the sale of FTX assets were filed with the court in the U.S.

Authorities have demanded an independent investigation of all individuals possibly involved in FTX “abuses”

Objections to the sale of FTX assets were filed with the court in the U.S.

U.S. Trustee Andrew Vara has filed an objection to the bankrupt cryptocurrency exchange FTX’s plans to sell its assets – cryptocurrency, clearing house LedgerX, as well as units of the exchange in Japan and Europe.

A United States trustee is a federal official responsible for enforcing civil bankruptcy laws in the United States. U.S. trustees are appointed by the attorney general.

FTX filed for bankruptcy protection on Nov. 11 and on Dec. 15 asked the court for permission to sell the platforms to FTX Europe AG (Switzerland), FTX Japan Holdings K.K. (Japan) and two U.S. companies: the exchange and clearinghouse LedgerX and the depository platform Embed Financial Technologies Inc. along with its subsidiary Embed Clearing LLC. According to FTX, the sale of these firms could allow them to continue or resume operations and, as a result, increase their value.

U.S. Trustee Andrew Vara’s statement calls for an independent investigation before selling the assets. Vara claims that the companies may have information related to the FTX bankruptcy.

He said in a statement that asset sales should not be permitted until a full and independent investigation has been conducted of all individuals and entities who “may have been involved in abuse, negligence or other acts of liability.”

In early January, it was revealed that exchange executives spent $40 million in the first nine months of 2022 to pay for hotels, entertainment and flights. Exact expense items have not been identified, most of the money – about $15 million – was spent on lodging at Bahamian resorts, and $6.9 million was spent on “meals and entertainment.”

The exchange spent about $3.9 million on airfare, and another $500,000 on “postage and shipping,” which may be due to the fact that FTX hired private planes to deliver Amazon packages from Miami to employees at its headquarters in the Bahamas, because the usual way goods from the marketplace were not delivered to the country.

In late November, it was reported that Sam Bankman-Fried’s company, his parents and former executives of the bankrupt cryptocurrency exchange had bought at least 19 properties worth about $121 million in the Bahamas over the past two years.

FTX’s bankruptcy case is pending in Delaware County, New York. At the same time, a court case is pending in Manhattan against Sam Bankman-Fried, the exchange’s founder and former executive. He is accused of fraud, defrauding investors and illegally using billions of dollars in customer funds.

At a Jan. 3 hearing, Bankman-Fried pleaded not guilty. U.S. District Judge Lewis Kaplan set the next hearing for Oct. 2, 2023. Before that deadline, the prosecution must present evidence of Bankman-Fried’s guilt.

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