Share this article
Sign Up
- Back to menuPrices
- Back to menuResearch
- Back to menu
- Back to menu
- Back to menu
- Back to menu
- Back to menuWebinars
Judge Denies Appointment of Independent Examiner in FTX Bankruptcy
Delaware bankruptcy court judge sided with the bankrupt crypto exchange and said there is no need to appoint an examiner to conduct "yet another costly investigation that would slow the progress" of the case.
A U.S. judge denied a motion to appoint an independent examiner into the FTX bankruptcy case during a Wednesday hearing.
A bipartisan group of four U.S. senators sent a letter to the judge in January, calling for an independent examiner to be appointed. Juliet Sarkessian, a representative for the U.S. Trustee, a branch of the Department of Justice, later argued the decision was out of the hands of Judge John Dorsey, of the Bankruptcy Court of Delaware in a case of this scale.
STORY CONTINUES BELOW
The judge sided with representatives for FTX, who previously argued there was no need to appoint an examiner to "conduct yet another costly investigation that would slow the progress of these cases."
Lawyers for FTX previously said an independent examination could end up costing the estate $100 million.
"I agree with the objectors and will deny the motion to appoint an examiner," the judge said.
During the same hearing, FTX's court-appointed joint provisional liquidators in the Bahamas said the company had transferred some $7.7 billion in assets from the Bahamian entities to U.S. units.
Read more: Independent FTX Examiner Could Cost Crypto Exchange $100M, Court Told
Sandali Handagama
Sandali Handagama is CoinDesk's deputy managing editor for policy and regulations, EMEA. She is an alumna of Columbia University's graduate school of journalism and has contributed to a variety of publications including The Guardian, Bloomberg, The Nation and Popular Science. Sandali doesn't own any crypto and she tweets as @iamsandali
More For You
Crypto Industry Asks President Trump to Stop JPMorgan’s 'Punitive Tax' on Data Access
A coalition of fintech and crypto trade groups is urging the White House to defend open banking and stop JPMorgan from charging fees to access customer data.
What to know:
- Ten major fintech and crypto trade associations have urged President Trump to stop big banks from imposing fees that could hinder innovation and competition.
- JPMorgan's plan to charge for access to consumer banking data may debank millions and threaten the adoption of stablecoins and self-custody wallets.
- The CFPB's open banking rule, which mandates free consumer access to bank data, is under threat as banks have sued to block it, and the CFPB has requested its vacatur.
