Federal Appeals Court Orders Independent Examiner in FTX Bankruptcy Case

The decision follows concerns of widespread fraud leading to the collapse of the cryptocurrency exchange, with co-founder awaiting sentencing for related charges.

• An independent examiner has been ordered by a federal appeals court to review the bankruptcy case of FTX, a multibillion-dollar cryptocurrency exchange.
• The decision comes amid concerns about widespread fraud leading up to the collapse of FTX.
• FTX co-founder Sam Bankman-Fried, who is awaiting sentencing in March after being convicted on wire-fraud and conspiracy charges, had appointed John Ray III as the company's new CEO on the same day the company sought bankruptcy protection.
• Prosecutors claim that Bankman-Fried siphoned billions of dollars from customer accounts at FTX into his cryptocurrency hedge fund, Alameda Research.
• The appointment of an independent examiner is mandated by the bankruptcy code, and their findings will be made public.

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