Judge John Dorsey of the United States Bankruptcy Court for the District of Delaware denied the motion appointing an independent examiner for FTX.
In the hearing on February 15, Judge Dorsey said he had some discretion under the law to choose whether to appoint an examiner in the FTX bankruptcy case, although some of the parties met the debt threshold with loss of funds. According to the judge, appointing an examiner would be an “unnecessary burden” on FTX’s debtors and creditors. He also mentioned CEO John Ray’s experience in a similar situation.
“There is no question that if an examiner is appointed here, the cost of the examination, according to the scope suggested by the Trustee at the hearing, will be in the tens of millions of dollars, and will exceed a hundred million dollars,” he said. Dorsey. “Given the unique facts and circumstances of this case, I have no doubt that the appointment of an examiner would not be in the best interest of the creditors.”
This story is developing and will be updated.