{"id":17375,"date":"2023-02-07T17:57:21","date_gmt":"2023-02-07T17:57:21","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/judge-delays-decision-on-appointing-independent-examiner-amid-cost-concerns-bitcoin-news\/"},"modified":"2023-02-07T17:57:21","modified_gmt":"2023-02-07T17:57:21","slug":"judge-delays-decision-on-appointing-independent-examiner-amid-cost-concerns-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/judge-delays-decision-on-appointing-independent-examiner-amid-cost-concerns-bitcoin-news\/","title":{"rendered":"Judge Delays Decision on Appointing Independent Examiner Amid Cost Concerns \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Judge John Dorsey has delayed his decision on whether to appoint an independent examiner in the FTX case. At the latest hearing, Dorsey acknowledged that the cost to debtors could reach tens of millions of dollars. Currently, the bankruptcy judge is hopeful that the issue will be resolved through a mutually agreed upon solution between both parties. A representative for the U.S. Department of Justice\u2019s Trustee contended, however, that the appointment of an independent examiner was mandated by Congress and no longer within Dorsey\u2019s authority.<\/strong><\/p>\n

FTX Bankruptcy Hearing Highlights Cost Concerns and Calls for Impartiality<\/h2>\n

Three days ago, Bitcoin.com News reported<\/a> on the U.S. Trustee in the FTX bankruptcy case and the government\u2019s request to appoint an independent examiner. At the latest hearing<\/a>, FTX\u2019s lawyers from Sullivan & Cromwell<\/a> argued that the endeavor could be costly.<\/p>\n

John J. Ray III<\/a>, FTX\u2019s new CEO, estimated that expenses could reach between $90 million and $100 million. James Bromley of Sullivan & Cromwell said, \u201cIt\u2019s just going to result in duplicated effort and a significant amount of expense. We don\u2019t have enough money to pay back all of our creditors.\u201d<\/p>\n

Bromley maintained that there is \u201cno evidence\u201d that any outside professionals would be more impartial than FTX\u2019s current experts. FTX debtors have a number of experts working on the case including the cybersecurity firm Sygnia. FTX\u2019s executives and legal teams are collaborating with criminal investigators and top government regulators.<\/p>\n

Ray, FTX\u2019s new CEO, earned roughly $690,000 for his work last year and continued to work during Christmas and the holiday season. Juliet Sarkessian, representing the U.S. Trustee, characterized the FTX situation as a \u201cdumpster fire\u201d and emphasized that the appointment of an examiner was mandated by Congress in these circumstances.<\/p>\n

Sarkessian\u2019s comments align with the letter sent to the court by senators Cynthia Lummis<\/a> (R-WY), Thom Tillis (R-NC), Elizabeth Warren<\/a> (D-MA), and John Hickenlooper (D-CO). The senators urged the court to appoint an independent examiner, emphasizing that numerous questions \u201cremain unanswered.\u201d Sarkessian believes that an examiner may uncover information that would not be discovered otherwise and could reveal any wrongdoing by specific FTX employees.<\/p>\n

During his testimony, FTX CEO Ray described the bankruptcy as \u201cpure hell\u201d when he listed his expenses from 2022. He also noted that FTX was unlike anything he had ever encountered and that former FTX executives did not maintain \u201ca single list of anything.\u201d<\/p>\n

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\nTags in this story
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attorney<\/a>, Bankruptcy<\/a>, ceo<\/a>, Congress<\/a>, cost<\/a>, Court<\/a>, creditors<\/a>, criminal investigators<\/a>, cybersecurity firm<\/a>, cynthia lummis<\/a>, debtors<\/a>, Decision<\/a>, DOJ<\/a>, duplicated effort<\/a>, Elizabeth Warren<\/a>, expenses<\/a>, experts<\/a>, ftx<\/a>, FTX Bankruptcy<\/a>, FTX collapse<\/a>, FTX examiner<\/a>, FTX experts<\/a>, government regulators<\/a>, hearing<\/a>, impartial<\/a>, independent examiner<\/a>, John Dorsey<\/a>, John Hickenlooper<\/a>, John J. Ray III<\/a>, Juliet Sarkessian<\/a>, Lawyers<\/a>, Letter<\/a>, mutually agreed solution<\/a>, pure hell<\/a>, Senators<\/a>, Sullivan Cromwell<\/a>, Sygnia<\/a>, testimony<\/a>, Thom Tillis<\/a>, U.S. Trustee<\/a>, unanswered questions<\/a>, US Trustee<\/a><\/div>\n<\/div>\n

What are your thoughts on the ongoing FTX bankruptcy case and the potential appointment of an independent examiner? Share your insights in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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