The Department of Justice has requested that an independent examiner be appointed to review "substantial and serious allegations of fraud, dishonesty" and "incompetence" after the implosion of Sam Bankman-Fried's crypto empire.

"Many times, the Department of Justice and bankruptcy estates in fraud cases work together in compiling potential restitution or other types of actions to make victims whole," he said.

Vara said an examination is preferable to an internal investigation because of the wider implications the company's collapse may have on the crypto industry.

trustee said that an examiner is mandatory because FTX's fixed, liquidated and unsecured debts to customers exceed the $5 million threshold.

BlockFi, a crypto lender, filed for bankruptcy protection in New Jersey last month.