US Government Presses for Independent Examiner in FTX Bankruptcy Case

Following the U.S. bankruptcy tribunal judge’s rejection of the U.S. Trustee’s plea to designate an impartial researcher for the FTX bankruptcy case, the authorities is present appealing this verdict. In essence, the U.S. Trustee’s entreaty has been forwarded to the U.S. Third Circuit Court of Appeals, and main justice Colm F. Connolly acknowledged that helium is compelled to comply with the Trustee’s request.

U.S. Trustee Drives for Independent Examiner successful FTX Bankruptcy Proceedings With Third Circuit Appeals Motion

The U.S. government, peculiarly the Department of Justice-appointed U.S. Trustee designated to the FTX bankruptcy lawsuit wants an autarkic examiner assigned to the proceedings. Last December, an lawyer for the U.S. Trustee submitted a written missive to the tribunal insisting that an impartial examiner is needed. Additionally, a tiny radical of bipartisan U.S. senators person besides stressed that an autarkic researcher should beryllium assigned to the FTX case.

The U.S. senators who wrote the missive asking for an enquiry included Cynthia Lummis (R-WY), Thom Tillis (R-NC), Elizabeth Warren (D-MA), and John Hickenlooper (D-CO). However, the squad managing FTX has estimated a abstracted examiner could outgo the property astir $100 cardinal successful expenses. Then during the archetypal week of February 2023, justice John Dorsey delayed his decision to name an examiner, and a week aboriginal helium denied the U.S. Trustee’s request.

In the court filing registered connected May 30, main justice Connolly said “I person nary prime but to assistance the Trustee’s motion” aft appellant Andrew Vara filed the motion. “No 1 contests that the Trustee requested an examiner present oregon that the debtor’s fixed, liquidated, unsecured debts, different than debts for goods, services, oregon taxes, oregon owing to an insider, transcend $5 million,” the justice stated.

Judge Connolly added:

The lone contented is whether, fixed those facts, the bankruptcy tribunal could lawfully cull the Trustee’s petition for the assignment of an examiner.

Judge Connolly further decided that the tribunal volition contented an bid successful accordance with this memorandum opinion. He besides stated that the valuation of the appeal’s merits volition beryllium suspended until the Third Circuit delivers a ruling. It’s been astir 200 days since Sam Bankman-Fried’s FTX filed for Chapter 11 bankruptcy extortion successful November 2022.

What are your thoughts connected the U.S. government’s relentless pursuit of an autarkic examiner successful the FTX Bankruptcy Case? Share your opinions and insights successful the comments conception below.