US trustee appeals FTX bankruptcy judge's ruling to deny appointment of independent examiner

Lawyers for Andrew Vara, the United States Trustee representing the interests of the Department of Justice successful crypto speech FTX’s bankruptcy proceedings, has filed an entreaty against a national judge’s denial of a question appointing an autarkic examiner successful the case.

In a March 6 filing successful U.S. Bankruptcy Court for the District of Delaware, the ineligible squad petitioned to person the U.S. District Court see an entreaty for a February ruling from Judge John Dorsey. The national justice said successful a Feb. 15 hearing that helium would contradict a question to name an examiner successful the FTX bankruptcy case, saying it would beryllium an “unnecessary burden” connected the firm’s debtors and creditors.

At the time, Judge Dorsey said the costs of an examiner “would apt transcend 1 100 cardinal dollars” and “not beryllium successful the champion involvement of the creditors”. Both Vara arsenic good arsenic a radical of 4 U.S. senators called connected the court to name an autarkic examiner, citing the request for transparency and suggesting imaginable conflicts of interest. The justice called the missive from the lawmakers an “inappropriate ex parte communication” that helium would not see successful his decision.

Related: FTX presumption shows ‘massive shortfall’ successful firm’s assets

FTX’s bankruptcy proceedings person been ongoing since the institution filed for Chapter 11 extortion successful November 2022. The transgression lawsuit against Sam Bankman-Fried, whose proceedings is expected to statesman successful October, has precocious been focused connected the erstwhile CEO’s bail conditions — prosecutors have been seeking to limit oregon region his quality to interaction existent and erstwhile FTX and Alameda employees.