FTX Bankruptcy: Judge Delays Decision on Appointing Independent Examiner Amid Cost Concerns

Judge John Dorsey has delayed his determination connected whether to name an autarkic examiner successful the FTX case. At the latest hearing, Dorsey acknowledged that the outgo to debtors could scope tens of millions of dollars. Currently, the bankruptcy justice is hopeful that the contented volition beryllium resolved done a mutually agreed upon solution betwixt some parties. A typical for the U.S. Department of Justice’s Trustee contended, however, that the assignment of an autarkic examiner was mandated by Congress and nary longer wrong Dorsey’s authority.

FTX Bankruptcy Hearing Highlights Cost Concerns and Calls for Impartiality

Three days ago, Bitcoin.com News reported connected the U.S. Trustee successful the FTX bankruptcy lawsuit and the government’s petition to name an autarkic examiner. At the latest hearing, FTX’s lawyers from Sullivan & Cromwell argued that the endeavor could beryllium costly.

John J. Ray III, FTX’s caller CEO, estimated that expenses could scope betwixt $90 cardinal and $100 million. James Bromley of Sullivan & Cromwell said, “It’s conscionable going to effect successful duplicated effort and a important magnitude of expense. We don’t person capable wealth to wage backmost each of our creditors.”

Bromley maintained that determination is “no evidence” that immoderate extracurricular professionals would beryllium much impartial than FTX’s existent experts. FTX debtors person a fig of experts moving connected the lawsuit including the cybersecurity steadfast Sygnia. FTX’s executives and ineligible teams are collaborating with transgression investigators and apical authorities regulators.

Ray, FTX’s caller CEO, earned astir $690,000 for his enactment past twelvemonth and continued to enactment during Christmas and the vacation season. Juliet Sarkessian, representing the U.S. Trustee, characterized the FTX concern arsenic a “dumpster fire” and emphasized that the assignment of an examiner was mandated by Congress successful these circumstances.

Sarkessian’s comments align with the missive sent to the tribunal by senators Cynthia Lummis (R-WY), Thom Tillis (R-NC), Elizabeth Warren (D-MA), and John Hickenlooper (D-CO). The senators urged the tribunal to name an autarkic examiner, emphasizing that galore questions “remain unanswered.” Sarkessian believes that an examiner whitethorn uncover accusation that would not beryllium discovered different and could uncover immoderate wrongdoing by circumstantial FTX employees.

During his testimony, FTX CEO Ray described the bankruptcy arsenic “pure hell” erstwhile helium listed his expenses from 2022. He besides noted that FTX was dissimilar thing helium had ever encountered and that erstwhile FTX executives did not support “a azygous database of anything.”

What are your thoughts connected the ongoing FTX bankruptcy lawsuit and the imaginable assignment of an autarkic examiner? Share your insights successful the comments conception below.

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