FTX’s Asset Sale Plans Blocked by US Trustee, Fraud Charges Denied

• A U.S. Trustee has opposed FTX’s plans to sell its units in Europe and Japan.
• The US Trustee, Andrew Vara, has demanded an independent investigation into the sale of these units.
• On Tuesday, FTX founder Sam Bankman Fried entered a not-guilty plea to criminal charges of fraud and causing billions of dollars in losses.

The troubled cryptocurrency exchange FTX has recently come under fire after a U.S. Trustee has objected to its plans to sell its units in Europe and Japan. According to Reuters, a US Trustee has opposed FTX’s proposed asset sales, per a court filing. The exchange intended to market its LedgerX clearinghouse, futures contracts for digital currencies, and units throughout Europe and Japan.

FTX, founded by Sam Bankman Fried, filed for chapter 11 bankruptcy protection in November of last year. This week, Sam Bankman Fried 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 US Trustee, Andrew Vara, demanded an independent probe into the sale of the units in his filing, claiming that the companies might have information about FTX’s bankruptcy that could be useful to the case. Vara stated that „the 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.“

This news has sparked debate among the crypto community, with many questioning the legality of the proposed asset sales by FTX and whether or not the exchange will be able to recover from its current bankruptcy case. It remains to be seen what the outcome of this legal battle will be, but one thing is certain: FTX is in for a long, hard fight ahead.

Comments are closed.