Four US Senators Urge Independent Investigation of FTX and Related Companies To Ensure Justice

Four US senators are urging a federal bankruptcy judge to rule in favor of having an independent examiner investigate FTX and its related companies.

US Senators John Hickenlooper, Thom Tillis, Elizabeth Warren and Cynthia Lummis sent a letter to Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware in support of a motion to appoint an independent examiner as part of FTX’s bankruptcy proceedings.

Per the letter, the senators are concerned over law firm Sullivan & Cromwell representing FTX during the proceedings and working with the company’s new executive team to uncover suspected wrongdoing.

“We believe it is critical that a strong, objective, and disinterested examiner is appointed in this case to conduct a searching investigation of FTX, FTX US and its related entities in order to uncover the facts needed to assure FTX’s customers – and the broader public – that justice is served and to inform Congress’ consideration of future digital asset legislation.”

The senators allege that the law firm is not a “disinterested” party since it had “advised FTX for years leading up to its collapse and one of its partners even served as FTX’s general counsel.”

“Additionally, somewhat shockingly, Sullivan & Cromwell claims it is ‘disinterested’ within the meaning of the U.S. Bankruptcy Code. Yet significant questions about the firm’s involvement in the operations of FTX remain unanswered, including the extent to which Sullivan & Cromwell attorneys had questions or suspected fraud or the absence of appropriate legal controls, the actual scope of Sullivan & Cromwell’s representation of FTX and if not Sullivan & Cromwell, which law firm actually served as ‘primary external counsel’ to the Debtors…

Put bluntly, the firm is simply not in a position to uncover the information needed to ensure confidence in any investigation or findings.”

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines


Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney
Featured Image: Shutterstock/Zalevska Alona