• The U.S. Trustee made a motion to appoint an independent examiner for FTX Bankruptcy case.
• Judge John Dorsey of the United States Bankruptcy Court denied this motion in a Feb. 15 hearing.
• Judge Dorsey said that appointing an examiner would be too costly and not in the best interest of creditors.
FTX Bankruptcy Case: Motion for Independent Examiner Denied
U.S Trustee’s Motion
The U.S trustee made a motion to appoint an independent examiner for the FTX bankruptcy case due to arguments including that examination was necessary to scrutinize the use of software to conceal FTX’s alleged misuse of customer funds.
Judge Denies Motion
Judge John Dorsey of the United States Bankruptcy Court for the District of Delaware has denied this motion on Feb 15th, citing that appointing an examiner would be an “unnecessary burden” on FTX’s debtors and creditors, due to additional expenses it would incur.
Judge Dorsey stated that appointing an examiner would cost tens of millions or even more than one hundred million dollars which is why he believes it is not in the best interest of creditors at this time.
In conclusion, Judge John Dorsey decided against appointing an independent examiner in the FTX bankruptcy case due to potential costs exceeding what is reasonable and being beneficial to those involved in this particular case.
The takeaway from this article is that Judge John Dorsey disapproved the motion by U.S trustee to appoint an independent examiner as he believed it was too costly and not beneficial enough for all parties involved in this particular case