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US Government’s Pursuit of FTX Investigation Reaches Court of Appeals – Here’s the Latest

On Tuesday, the US government’s efforts to push for an independent inquiry into the now-bankrupt cryptocurrency exchange FTX were referred to the U.S. Third Circuit Court of Appeals.

Delaware District Judge Colm F. Connolly ruled that the decision of whether the case should be referred to the appeals court was not within the judge’s jurisdiction.

The ruling stated that this is indeed the case if the U.S. Trustee, a branch of the Department of Justice (DOJ), has requested the referral and there is no involvement of a “question of fact.”

In this particular case, Judge Connolly further clarified that “the facts are not in dispute,” highlighting that

there is no disagreement that the Trustee requested an examiner in this matter.

The judge added that due to these circumstances, they have no alternative but to grant the motion made

by the Trustee.

The government’s pursuit stems from a joint effort by a group of Senators from both the Democratic and Republican parties.

In January, they called for an inquiry into the bankruptcy of FTX, asserting the necessity of a comprehensive and impartial investigation into the factors that contributed to the collapse of the exchange.

Despite warnings from FTX management about the potential $100 million in legal fees, Senators are persisting in their call for an inquiry into the collapse of FTX.

Additionally, the government’s push for an inquiry into FTX’s collapse persists, even though bankruptcy judge John Dorsey rejected the appointment of an examiner in March. Judge Dorsey cited concerns about the high costs and time-consuming nature of such an investigation. US Government’s Pursuit of FTX Investigation Reaches Court of Appeals – Here’s the Latest

FTX submitted a bankruptcy filing in November 2022, followed by the arrest of the exchange’s CEO, Sam Bankman-Fried, in December.

If convicted on all charges, the former CEO of the exchange could potentially face a sentence of over 100 years in prison. US Government’s Pursuit of FTX Investigation Reaches Court of Appeals – Here’s the Latest

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