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The collapse of FTX is the fastest in American corporate history

The collapse of FTX is the fastest in American corporate history

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Answer The collapse of FTX is the fastest in American corporate history

The US trustee responsible for the FTX bankruptcy case has filed a motion with the court requesting the appointment of an independent examiner.

The US trustee conducting FTX’s bankruptcy proceedings referred to the company’s collapse as the fastest collapse in American history, and is requesting an independent investigation into the causes of the company’s collapse.

After reaching a market high of $32 billion earlier in the year, debtors suffered an almost unprecedented decline in the value of their holdings over eight days in November, according to trustee Andrew Farra.

This led to a severe liquidity crisis as a result of the rush for withdrawals.

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In the majority of bankruptcies, independent examiners are called when it is considered to be in the best interest of creditors or when the amount of unsecured liabilities exceeds $5 million.

This type of examiner was brought in to hear charges of mismanagement by Celsius as part of its ongoing Chapter 11 lawsuit.

This type of examiner has also been brought in to look into other high-profile bankruptcy cases, such as that of Lehman Brothers.

Referring to the failure of FTX, Fara said:

The issues raised here are too large and too important to be left for internal investigation.

According to the proposal, the appointment of the investigator, which requires the approval of a judge, would be in the interest of clients and other interested parties because they would be able to investigate material and serious allegations of fraud, dishonesty, incompetence, misconduct and mismanagement by FTX.

In addition, the motion indicates that the examiner may investigate the circumstances surrounding the collapse of FTX, the movement of clients’ assets away from the exchange, and the question of whether companies that lost money in FTX were allowed to claim compensation for losses.

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Since taking over as CEO of FTX on November 11, John J. Ray has been highly critical of the company’s operations.

On the first day in court, it was stated that the company used software to hide the misuse of client funds and that there was a complete absence of trustworthy financial information.

He also stated that control of the company was concentrated in the hands of a very small group of inexperienced individuals.

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