Judge John Dorsey of the United States Bankruptcy Court for the District of Delaware has denied a motion to appoint an independent examiner for FTX.
At a February 15 hearing, Judge Dorsey said he had some discretion under the law to decide whether to appoint an examiner in the FTX bankruptcy case despite the fact that some of the parties reached the debt threshold with the loss. Of funds. According to the judge, appointing an examiner would be an “unnecessary burden” on FTX’s debtors and creditors. He also cited CEO John Ray’s experience in similar circumstances.
“There is no question that if an examiner is appointed, the cost of the examination, given the scope suggested by the receiver at the hearing, would be in the tens of millions of dollars, and probably in excess of $100 million,” Dorsey said. “Given the facts and circumstances of this unique case, I have no doubt that the appointment of an examiner would not be in the interest of creditors.”
This story is in development and will be updated.
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