Following FTX’s attorneys asking for the subpoenaing of FTX’s co-founder Sam Bankman-Fried (SBF) and his family members, a motion to oppose was filed by the US Trustee appointed by the Department of Justice. This was defined as a movement that mirrors the actions of federally appointed independent examiners.
US Trustee Argues Against Duplicating Efforts in FTX Bankruptcy Investigation
In the past, attorneys representing FTX creditors filed a motion with the chapter court docket in order to subpoena or query the inner circle members and the family of the debtors. Sam Bankman-Fried (SBF). FTX’s attorneys wanted to query SBF, his father and mother. Joseph Bankman And Barbara Fried, his brother Gabriel Bankman-Fried and 4 members from the FTX/Alameda executive teams. The legal team stated that many of them were not cooperating with the chapter’s continuation.
After the application was filed, a motion to object was filed in opposition to the proposal for a subpoena. The proceedings were further enhanced by the addition of Andrew Vara, the US trustee in the FTX Chapter case. In the opposition submission Vara argued that cross examination and subpoenas might be a waste of time and lead to duplicate analysis. Vara noted that the chapter court docket, it should be noted, has the “obligation to prevent unnecessary expenses in the administration of assets.”
Therefore, the U.S. Trustee Respectfully requests that the court decide the scope for investigation of the motions simultaneously with the scope for investigation of any examiner and award any other reduction the court docket deems necessary. These are ample.
Vara believes this case is valid, as it includes a large sum of money and three members of the family. Refer to as an unbiased examiner. Sens. Elizabeth Warren (D-Mass.), John Hickenlooper (D-Colo.) and Cynthia Lummis (R-Wyo.) urged Delaware District Bankruptcy Court Judge John Dorsey to appoint an independent examiner. The US Senators insist on the need for an “objective investigation of the activities that led to the collapse of FTX” which is considered to be crucial.
What do you think should be the next step in the FTX Chapter case? This will ensure an efficient investigation and a solution to the company’s downfall. We would love to hear your thoughts on the matter in the comments section.
