“For example, an investigation into FTX Group’s use of its own cryptocurrency tokens, FTTs, to inflate the value of FTX and Alameda Research could bring this practice under further scrutiny, thereby alerting potential investors to undisclosed credit risks in other cryptocurrency companies,” the opinion stated.
Echoes of Conviction: Alameda’s Affiliation with FTX
Alameda, a crypto lending firm linked to FTX, faced scrutiny, especially with both entities founded and controlled by Sam Bankman-Fried, convicted of fraud in November. The court emphasized the need for an impartial investigation, given the intricate web of connections.
Silent Echoes: Representatives Mute on Ruling
Notably, representatives of FXT and the U.S. Trustee’s Office refrained from immediate comments following the Third Circuit’s resounding ruling.
Third Circuit Orders Examiner in FTX Bankruptcy Battle: Third Circuit Panel
U.S. Circuit Judges L. Felipe Restrepo, Stephanos Bibas, and Anthony J. Scirica constituted the panel responsible for the landmark decision.
