No Independent Investigation Says New FTX CEO
According to news sources, FTX’s new chief executive told a bankruptcy court Monday there is “a danger” to authorizing an independent investigation of the crypto exchange’s collapse. John Ray said he had no use for prior court-supervised investigations into other companies he steered through bankruptcy.
“Neither in Enron nor in Residential Capital did I make use of that report,” Ray testified during a hearing before U.S. Bankruptcy Judge John Dorsey in Delaware. “They’re almost a curated gathering of statements that failed to take real opinions as to what occurred.”
The Enron investigation cost $90 million and the Residential Capital investigation cost $100 million, Ray said, adding that neither was helpful. Ray’s testimony came as the judge considered whether to appoint an examiner in the FTX collapse as requested by the Justice Department.
“This is just too fragile an environment for me to accept yet another seat at the table,” Ray testified. “We’ve come too far to allow that to happen.”
Dorsey later said he’d take under advisement a request to appoint an examiner to investigate the collapse of FTX while the parties try to resolve their differences.
The collapse of FTX spurred criminal charges against its founder, Sam Bankman-Fried, who has pleaded not guilty to eight criminal charges, including fraud and conspiracy. Ray testified that FTX has furnished 70,000 documents to federal prosecutors, who have asked 156 times for information.
“It’s virtually an ongoing exercise, but the last 90 days have been an extremely intense effort to provide the information the government has requested,” Ray said.
It’s very interesting that the new CEO does not want to see an independent investigation here. As we know, success or failure in the courtroom or during the settlement process depends on having the very best, most detailed information about a case. That’s why great attorneys and law firms across the country work with the worldwide team of Santoni Investigations who will ensure you know everything to make the right decisions and maximize the settlement process or win your case in court!