Fun

DOJ-Appointed US Trustee Objects to Subpoena Request in FTX Bankruptcy Case

News Feed - 2023-02-04 03:02:15

DOJ-Appointed US Trustee Objects to Subpoena Request in FTX Bankruptcy Case


Following a request from FTX lawyers to subpoena FTX co-founder Sam Bankman-Fried (SBF) and members of his family, the U.S. Trustee appointed by the Department of Justice has filed an opposition to the request. The U.S. Trustee explained that the motion would duplicate the efforts of the federally appointed independent examiner. U.S. Trustee Argues for Limiting Duplicative Efforts in FTX Bankruptcy Investigation


About a week ago, lawyers representing FTX debtors filed a motion with the bankruptcy court to subpoena and question Sam Bankman-Fried’s (SBF) inner circle and family members. The FTX attorneys stated they want to question SBF, his parents Joseph Bankman and Barbara Fried, his brother Gabriel Bankman-Fried, and four members of the FTX/Alameda executive teams. The legal team noted that several of these individuals were allegedly not cooperating with the bankruptcy process.


After the request was filed, the U.S. Trustee appointed by the Department of Justice (DOJ) filed an objection motion against the subpoena proposal. Andrew Vara, the U.S. Trustee in the FTX bankruptcy case, was added to the proceedings in December 2022. In the opposition filing, Vara argued that the subpoenas and questioning could be a waste of time and result in duplicative investigative efforts. Vara emphasized that the bankruptcy court has an “obligation to prevent unnecessary expenditures in the administration of an estate.”


“To avoid duplication of effort, and to prevent unnecessary expenditures in the administration of these estates, the U.S. Trustee respectfully requests that if the court orders the appointment of an examiner, then the court establish the scope of the Rule 2004 relief contemporaneously with the scope of the examiner’s investigation,” the U.S. Trustee’s filing details. Vara’s filing with the bankruptcy court concludes: Wherefore, the U.S. Trustee respectfully requests that the court determine the investigative scope of the motions contemporaneously with the scope of any examiner’s investigation, and grant any such other and further relief that the court deems just and proper.


Vara believes the examiner is justified in this case, which involves a large amount of money, and three members of Congress have called for an independent examiner. Senators Elizabeth Warren (D-Mass.), John Hickenlooper (D-Colo.) and Cynthia Lummis (R-Wyo.) have urged Judge John Dorsey of the Bankruptcy Court of the District of Delaware to support appointing an independent examiner. The U.S. senators insisted that an “objective investigation of the activities that led to the collapse of FTX” is necessary.” Tags in this story Andrew Vara, Bankruptcy Court, Bankruptcy Court of the District of Delaware, Barbara Fried, co-founder, collapse, Congress, cynthia lummis, debtors, department of justice, duplicative efforts, Elizabeth Warren, Estates, expenditures, family members, ftx, Gabriel Bankman-Fried, independent examiner, Inner Circle, Investigation, John Hickenlooper, Joseph Bankman, Judge John Dorsey, Motion, non-cooperation, objections, objective investigation, opposition, Proceedings, Questioning, Sam Bankman-Fried, sbf, Senators, Subpoena, U.S. Trustee


What do you think should be the next step in the FTX bankruptcy case to ensure an objective and effective investigation into the collapse of the company? Let us know your thoughts about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Ethereum Network"s Rising Gas Fees in 2023: A Balancing Act of Growth and Cost NEWS | 9 hours ago Addressable Raises $7.5 Million to Help Web3 Marketers Reach Their Audiences NEWS | 13 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleFoxify Announce Partnership with Tyson Fury Next articleIntroducing Proof Of Memes: The Ultimate Memecoin Blockchain Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFollowing a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days


Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether

News Feed

How Close Is Bitcoin To A Bear Market? This Historical Level May Contain Hints
Este artículo también está disponible en español. A Bitcoin on-chain level has historically served as the boundary for bear markets. Here’s how far the asset’
US Judge Denies Customer’s Plea to Quash IRS Bitstamp Inquiry
US Judge Denies Customer"s Plea to Quash IRS Bitstamp Inquiry A Washington Western District Court judge has rejected petitioner William Zietzke’s appeal to stop the U.S. In
Legends of Bezogia Reveals Sustainable Play2Earn Mechanics By Publishing Breakthrough Whitepaper
Legends of Bezogia Reveals Sustainable Play2Earn Mechanics By Publishing Breakthrough Whitepaper sponsored ZOGI Labs Ltd. reveals shocking whitepaper detailing next-level blockchain
DeFi Yield Protocol Enables Buyback, Farming and Staking V2 on Binance Smart Chain
DeFi Yield Protocol Enables Buyback, Farming and Staking V2 on Binance Smart Chain sponsored Nowadays, there are so many different viable ways of earning money through the usage of
Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate Ahead of US GDP, Consumer Sentiment Data
Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate Ahead of US GDP, Consumer Sentiment Data Cryptocurrencies continued to consolidate recent gains on Jan. 24, as markets pr
A Look at the Fed’s Recent Custodia Bank Denial and the Central Bank’s Push Back Against Narrow Banking
A Look at the Fed"s Recent Custodia Bank Denial and the Central Bank’s Push Back Against Narrow Banking Over the past century, the number of American banks has significantly decr
Ripple Sues Youtube For Allowing Scams That Promised Returns Up to $1 Million
Ripple Sues Youtube For Allowing Scams That Promised Returns Up to $1 Million Ripple is suing Youtube, accusing the video platform of not doing enough to eliminate crypto-related &l
SEC will ask for $2B in fines and penalties — Ripple chief legal officer
Turner Wright3 hours agoSEC will ask for $2B in fines and penalties — Ripple chief legal officerRipple CEO Brad Garlinghouse and CLO Stuart Alderoty cited a judge imposing sanctions on the SEC in a lawsuit against Debt
Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate to Start the Week
Bitcoin, Ethereum Technical Analysis: BTC, ETH Consolidate to Start the Week Volatility in crypto markets remained high on Monday, as bitcoin was mostly in the red to start the wee
Bitcoin price drop and crypto market turmoil intensifies — Is Germany to blame?
Marcel Pechman3 hours agoBitcoin price drop and crypto market turmoil intensifies — Is Germany to blame?Some traders say Germany’s Bitcoin selling is behind this week’s drop, but a negative reaction to concerning m
Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing
Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing The Central Bank of Russia has emphasized the importance of moving forward with its digital rub
Crypto.com pairs up with Latin America’s biggest investment bank in stablecoin push
Ezra Reguerra10 hours agoCrypto.com pairs up with Latin America’s biggest investment bank in stablecoin pushCrypto.com will promote the BTG Dol stablecoin by pairing it with digital assets like Bitcoin and Ether on its