FTX Bankruptcy Judge Rejects US Trustee’s Request for Independent Investigator – Bitcoin News

The judge presiding over the FTX bankruptcy case has denied the US Trustee’s request to appoint an independent examiner for the ongoing proceedings. The decision comes after Judge John Dorsey delayed the ruling last week, citing concerns that the probe could cost creditors tens of millions of dollars.

The US Trustee’s argument for an independent investigator was ultimately overruled by the Court’s authority

In the latest filing in the FTX bankruptcy case, Judge John Dorsey has rejected the appointment of an independent investigator. Dorsey stated that the current team, led by FTX CEO John J. Ray III, is “highly qualified” to handle the bankruptcy proceedings independently. The decision overrides the U.S. trustee’s request to hire an independent examiner, which was said to be mandated by Congress.

However, the judge presiding over the FTX bankruptcy case emphasized that he had “no doubt that it would not be in the best interests of the creditors to appoint an examiner.” According to estimates, current management claimed that the cost of an independent investigator could reach between $90 million and $100 million. “Every dollar spent on administrative expenses in these cases is $1 less for the creditors,” Dorsey said at the hearing, agreeing that an examiner can be very costly.

Since December 1, 2022, an attorney for the US Trustee, part of the US Department of Justice (DOJ), has been seeking to appoint an examiner for the FTX case in the Delaware Bankruptcy Court. During the case, a representative for the trustee argued that the appointment of an independent examiner was mandated by Congress and no longer within Dorsey’s authority.

The trustee’s argument was supported by a letter from four bipartisan US senators insisting that an independent examiner be appointed. However, the Delaware bankruptcy judge’s decision underscores that the court’s authority overruled the government’s request.

What are your thoughts on the judge’s decision to deny the US Trustee’s request for an independent examiner in the FTX bankruptcy case? Let us know in the comments section below.

Jamie Redman

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