Monday, March 27, 2023

US debt appeals the FTX bankruptcy judge’s decision to deny the appointment of the legal examiner

Lawyers for Andrew Vara, the U.S. attorney representing the cryptocurrency exchange FTX, have filed an appeal against a federal judge’s denial of a motion to appoint an independent examiner in the case.

In a March 6 filing in the US Bankruptcy Court for the District of Delaware, the legal team requested that the Court of Appeals consider the appeal from the February ruling by Judge John Dorsey. A federal judge said at a hearing on February 15 that he would deny a motion to appoint an examiner in the FTX bankruptcy case, saying it would place an “unnecessary burden” on the company’s debtors and creditors.

At the time, Judge Dorsey said the examiner’s costs were “probably more than $100 million” and “not in the best interest of the creditors.” Both Vara and four US senators asked the court to appoint an independent investigator, citing the need for transparency and suggesting possible conflicts of interest. The judge called the legislators’ letter “inappropriate from the point of view of communication” and failed to note the rationale in his decision.

The FTX Debtors assert that, in light of the statute stating that “the court” shall order the appointment of an examiner … as appropriate, “as appropriate” should also be interpreted as “if applicable.”

I sit in my mouth

FTX’s bankruptcy continued when the company filed for Chapter 11 protection in November 2022. The criminal case against Sam Bankman-Fried, whose trial is expected to begin in October, was recently in the conditions of the former CEO’s bail: The prosecutors were. attempt to limit or eliminate its ability to contact current and former FTX and Alameda employees.

Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here is not intended to be used as financial advice or investment recommendations. Every investment and commercial move involves risks and it is the responsibility of each person to do their own research before making an investment decision.

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