FTX Bankruptcy Examiner Recommends Probe of LedgerX Sale

The fraud-tainted crypto firm FTX should face a new investigation into its money-losing sale of derivatives exchange LedgerX, a court-approved examiner recommended in a report made public Thursday.

Former federal prosecutor Robert J. Cleary concluded that FTX’s main law firm, Sullivan & Cromwell, should not be part of any probe of the transaction because the firm was previously involved in the $300 million deal that brought LedgerX into the FTX empire.

Previously: FTX Sells LedgerX to Miami Exchange Owner for $50 Million

Cleary had been asked by a federal judge to review several aspects of FTX’s multibillion-dollar bankruptcy case, ...