U.S. Court Asked to Reverse Decision to Not Appoint Independent Examiner in FTX Bankruptcy

A Delaware bankruptcy tribunal indispensable reverse a erstwhile bid denying the assignment of an autarkic examiner successful the FTX bankruptcy case, the U.S. Trustee, a subdivision of the Department of Justice (DOJ), said successful a tribunal filing from Wednesday.

In the filing, the Trustee says the bankruptcy tribunal "committed ineligible error" successful its February determination to oppose the assignment request successful a lawsuit wherever the criteria for requiring specified an examiner are met – including the information that the bankrupt property has implicit $5 cardinal successful "qualifying liabilities."

In February, Judge John Dorsey of the Bankruptcy Court of Delaware sided with the FTX estate, which argued an probe would outgo astir $100 cardinal and "slow the advancement of these cases."

Although parties to the FTX lawsuit person complained astir the "alleged" costs associated with appointing an examiner, for "both ineligible and applicable purposes, immoderate costs associated with appointing an examiner bash not warrant departure from the statutory request to name an examiner where, arsenic here, the statutory criteria are met," DOJ Trustee Andrew R. Vara said successful the filing.

The FTX crypto endeavor filed for bankruptcy successful November, shocking the crypto industry, with its laminitis Sam Bankman-Fried facing transgression charges successful the U.S.