{"id":17689,"date":"2023-02-15T23:32:47","date_gmt":"2023-02-15T23:32:47","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ftx-bankruptcy-judge-denies-us-trustees-request-for-independent-examiner-bitcoin-news\/"},"modified":"2023-02-15T23:32:47","modified_gmt":"2023-02-15T23:32:47","slug":"ftx-bankruptcy-judge-denies-us-trustees-request-for-independent-examiner-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ftx-bankruptcy-judge-denies-us-trustees-request-for-independent-examiner-bitcoin-news\/","title":{"rendered":"FTX Bankruptcy Judge Denies US Trustee’s Request for Independent Examiner \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The judge presiding over the FTX bankruptcy case has denied the U.S. Trustee\u2019s request to appoint an independent examiner for the ongoing proceedings. The decision comes after judge John Dorsey postponed the ruling last week, citing concerns that the examiner could cost creditors tens of millions of dollars.<\/strong><\/p>\n

The U.S. Trustee\u2019s Argument for an Independent Examiner Ultimately Overruled by the Court\u2019s Authority<\/h2>\n

In the latest filing in the FTX bankruptcy case docket<\/a>, judge John Dorsey has denied the appointment of an independent examiner. Dorsey stated that the current team, led by FTX CEO John J. Ray III<\/a>, is \u201chighly qualified\u201d to handle the bankruptcy proceedings independently. The decision overrides the U.S. Trustee\u2019s request to hire an independent examiner, which was said to be mandated by Congress.<\/p>\n

The judge presiding over the FTX bankruptcy case stressed, however, that he had \u201cno doubt that appointing an examiner would not be in the best interest of the creditors.\u201d According to estimates, current management claimed that expenses for an independent examiner could reach between $90 million and $100 million. \u201cEvery dollar spent on administrative expenses in these cases is $1 less for the creditors,\u201d Dorsey stated during the hearing, agreeing that an examiner could be very costly.<\/p>\n

Since Dec. 1, 2022, an attorney for the U.S. Trustee, an arm of the U.S. Department of Justice (DOJ), has been attempting<\/a> to appoint an examiner to the FTX case in the Delaware bankruptcy court. During the case, a representative for the Trustee argued<\/a> that the appointment of an independent examiner was mandated by Congress and no longer within Dorsey\u2019s authority.<\/p>\n

The Trustee\u2019s argument was supported by a letter from four bipartisan U.S. senators insisting that an independent examiner be appointed. However, the decision by the Delaware bankruptcy judge emphasizes that his court\u2019s authority has overruled the government\u2019s request.<\/p>\n

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\nTags in this story
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administrative expenses<\/a>, argument<\/a>, attorney<\/a>, Authority<\/a>, Bankruptcy<\/a>, Bipartisan<\/a>, ceo<\/a>, Congress<\/a>, cost<\/a>, Court<\/a>, creditors<\/a>, current management<\/a>, Decision<\/a>, Delaware bankruptcy court<\/a>, department of justice<\/a>, DOJ<\/a>, ftx<\/a>, FTX bankruptcy judge<\/a>, Government<\/a>, Independence<\/a>, independent examiner<\/a>, John Dorsey<\/a>, John J. Ray III<\/a>, Judge<\/a>, outcome<\/a>, Proceedings<\/a>, qualifications<\/a>, Senators<\/a>, support<\/a>, U.S. Trustee<\/a><\/div>\n<\/div>\n

What are your thoughts on the judge\u2019s decision to deny the U.S. Trustee\u2019s request for an independent examiner in the FTX bankruptcy case? Let us know 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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