FTX Update: The US Department of Justice Seeks to Launch Independent Investigation, SBF: Unclear Why FTX US Suspended Withdrawals

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SBF: FTX US Currently Has the Ability to Pay, to the Best of My Knowledge

Sam Bankman-Fried (SBF), the founder of FTX, stated, "FTX US currently has the ability to pay, to the best of my knowledge. Not sure why our withdrawals have been disabled."

Expanding on DealBook:

When I filed, I'm fairly sure FTX US was solvent, and that all US customers could be made whole.

To my knowledge, it still is today.

I was expecting that to happen. I'm surprised it hasn't. I'm not sure why US withdrawals were turned off.

— SBF (@SBF_FTX) December 1, 2022

US Justice Department Calls for Independent Investigation into FTX Incident

According to a report from the Wall Street Journal, the US Department of Justice (DOJ) bankruptcy watchdog has called for an independent investigation into the FTX bankruptcy incident.

DOJ oversight official Andrew Vara requested the bankruptcy judge overseeing FTX's bankruptcy to appoint an independent examiner to investigate "significant and serious allegations of fraud, dishonesty, misconduct, and mismanagement by FTX" and its circumstances before and after its collapse.

Additionally, the examiner should review if there are any viable legal claims to compensate FTX users for their losses.

US Authorities Demand FTX-Related Information from Investors and Trading Institutions

According to a report from Bloomberg, US authorities have requested cryptocurrency investors and trading firms closely associated with FTX to provide information and key data related to FTX, including FTX founder Sam Bankman-Fried and former head of Alameda Research's investment division, Caroline Ellison.

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