Judge Rejects The Appointment Of FTX Independent Examiner Worth $100 Million
- The motion to appoint an independent examiner to probe the bankruptcy of FTX was shot down by a judge in the United States.
- The Delaware Bankruptcy Court’s Judge John Dorsey concurred with FTX and said that there was no need to appoint an examiner to carry out “another costly probe that would slow down the case.”
During a hearing that took place on Wednesday, a court in the United States declined a motion to appoint an independent examiner into the FTX bankruptcy case.
A judge in the United States denied a petition to appoint an independent examiner in the FTX bankruptcy case at a hearing on Wednesday. In January, a group of four senators from both the Democratic and Republican parties in the United States filed a letter to the judge requesting the appointment of an impartial examiner. Later on, a representative for the United States Trustee, which is a division of the Department of Justice, named Juliet Sarkessian contended that in a case of this magnitude, the decision should not have been in the hands of Judge John Dorsey of the Bankruptcy Court of Delaware.
The examiner would have to “perform yet another costly inquiry that would hinder the progression of these cases,” and the judge agreed with FTX’s representatives that there was no need to appoint one. These representatives had previously claimed that there was no need to appoint an examiner.
In the past, attorneys for FTX have estimated that an impartial investigation may wind up costing the estate a total of one hundred million dollars. The judge stated, “I concur with the objections, and will deny the application to appoint an examiner.”
During the same hearing, the joint temporary liquidators that the court appointed for FTX in the Bahamas stated that the business had moved assets totaling about $7.7 billion from the Bahamian entities to the U.S. units.
Previously, FTX facilities, including 13 storage spaces and $2.4 million in automobiles, were for sale. Although there is little chance of uncovering unique gems, according to a report from liquidators tasked with cleaning through the failed bitcoin exchange’s surviving assets, office equipment and whatever is in the storage lockers may soon be available for purchase. The list of assets also includes $2.4 million in autos, which are mentioned briefly in the report.
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