FTX Asset Sales Challenged By The United States Trustee, As Per Report

Insolvent digital asset exchange FTX’s plans to sell its virtual currency futures and clearing house LedgerX, among other businesses, were challenged by the United States Trustee on 7th January, as per Reuters.

According to the filing, the United States Trustee Andrew Vara called for an independent investigation before any sale, asserting that crucial information related to the exchange’s bankruptcy might be compromised.

The document mentions,

“The sale of potentially valuable causes of action against the Debtors’ directors, officers and employees, or any other person or entity, should not be permitted until there has been a full and independent investigation into all persons and entities that may have been involved in any malfeasance, negligence or other actionable conduct.”

In an effort to recover lost funds from FTX customers, the cryptocurrency exchange’s new management planned to sell its units in Japan and Europe, along with derivatives exchange LedgerX and stock-clearing platform Embed. In a filing from 15th December, lawyers representing FTX claimed that selling these businesses would maximize their value to the FTX estate.

Sam Bankman-Fried, former CEO and founder of FTX pleaded not guilty to all criminal charges related to the collapse of the digital asset exchange on 3rd January, including wire fraud, and campaign finance violations, and securities fraud.