State officials support push for independent examiner in FTX bankruptcy

02/01 23:26

According to TheBlock, officials from more than a dozen states want a federal bankruptcy judge to appoint a third-party examiner of FTX's finances, citing the need for more transparency about the collapsed crypto exchange's assets. The motion, led by the Texas State Securities Board, and joined by regulators from Alaska, Arkansas, California, Florida, Hawaii, Idaho, Illinois, Kentucky, Maine, Maryland, New Hampshire, New Jersey, North Carolina, Oklahoma, Tennessee and Washington, D.C., cites “the magnitude and history of mismanagement” by FTX and Alameda’s previous leadership, as noted in bankruptcy and congressional testimony by current caretaker Chief Executive Officer John Ray III. The officials assert that, “the lack of transparency into the financial condition and assets of the debtors, and the continued regulatory investigations that are ongoing, the appointment of an examiner with specific guidelines as to their duties is not only appropriate and in the best interest of creditors, but mandatory,” under bankruptcy law.
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