• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Tuesday, May 13, 2025
  • Login
  • Register
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Crypto

US Government asks for an independent examiner for FTX Bankruptcy case

by Reshab Agarwal
May 31, 2023
in Crypto, Crypto Exchanges, News
Reading Time: 3 mins read
0
FTX

Credits: Watcher Guru

TwitterWhatsappLinkedin

In a significant development in the ongoing FTX bankruptcy case, the United States government is pushing for the appointment of an independent examiner for the case to investigate the affairs of the cryptocurrency exchange. The move comes as authorities seek to unravel the intricacies of FTX’s operations and protect the interests of its customers and creditors. The case, which has attracted widespread attention due to its potential impact on the cryptocurrency industry, has reached a critical juncture as stakeholders await the court’s decision on the appointment of the examiner.

You might also like

Trump-Appointed Officials Denied Entry to U.S. Copyright Office Amid Leadership Shake-Up

Qatar’s $400 Million Jet Gift to U.S. for Trump’s Use as Air Force One Raises Eyebrows

Lehigh County Halts New Tesla Investments Over Musk’s Political Focus and Company Decline

After the U.S. bankruptcy court judge dismissed the U.S. Trustee’s request for an impartial investigator in the FTX bankruptcy case, the government is now seeking to overturn this decision. The appeal from the U.S. Trustee has been escalated to the U.S. Third Circuit Court of Appeals, and Chief Judge Colm F. Connolly has acknowledged the obligation to consider the Trustee’s appeal.

U.S. Trustee’s Appeal: Pursuing an independent examiner for FTX Bankruptcy proceedings

The U.S. government, specifically the U.S. Trustee appointed by the Department of Justice for the FTX bankruptcy case, is advocating for the appointment of an independent examiner for FTX bankruptcy proceedings. In December of last year, an attorney representing the U.S. Trustee submitted a formal letter to the court, asserting the necessity of an unbiased examiner. Moreover, a bipartisan group of U.S. senators has emphasized the importance of assigning an independent investigator to the FTX case.

The letter requesting an inquiry was signed by U.S. senators Cynthia Lummis (R-WY), Thom Tillis (R-NC), Elizabeth Warren (D-MA), and John Hickenlooper (D-CO). Nonetheless, the FTX management team has estimated that having a separate examiner could result in approximately $100 million in expenses for the estate. In early February 2023, Judge John Dorsey postponed his decision regarding the appointment of an examiner, and a week later, he rejected the request made by the U.S. Trustee.

Court Grants Trustee’s motion for the examiner in response to appellant’s filing

Chief Judge Connolly, in a court filing submitted on May 30, expressed that he was compelled to approve the motion made by appellant Andrew Vara. The judge stated that there was no dispute regarding the Trustee’s request for an examiner in this case, nor was there any disagreement about the debtor’s fixed, liquidated, unsecured debts, except for debts related to goods, services, taxes, or those owed to an insider, which surpasses $5 million.

Judge Connolly said: “The only issue is whether, given those facts, the bankruptcy court could lawfully reject the Trustee’s request for the appointment of an examiner.”

Judge Connolly additionally ruled that the court would issue an order consistent with the memorandum opinion. He also mentioned that the assessment of the appeal’s merits would be put on hold until the Third Circuit renders a decision. Approximately 200 days have elapsed since FTX, owned by Sam Bankman-Fried, filed for Chapter 11 bankruptcy protection in November 2022.


In conclusion, the call for an independent examiner for the FTX bankruptcy case, made by the U.S. government and supported by bipartisan senators, reflects the importance of ensuring a thorough and impartial investigation. The involvement of high-profile senators such as Cynthia Lummis, Thom Tillis, Elizabeth Warren, and John Hickenlooper highlights the bipartisan concern over the need for transparency and accountability in the proceedings.

However, the FTX management team has expressed reservations about the potential financial burden associated with appointing a separate examiner. The estimated costs of around $100 million have raised valid concerns about the impact on the estate. Judge John Dorsey’s decision to delay and ultimately deny the U.S. Trustee’s request for an examiner adds further complexity to the case. This decision has sparked debates and raised questions about the fairness and openness of the bankruptcy proceedings.

Also Read: Russia is shifting to national currency for settlement from US Dollar.

Tags: #CollapseExaminerFTX
Tweet54SendShare15
Previous Post

MediaTek signs on to use new smartphone technology introduced by SoftBank’s Arm

Next Post

Dominance of China’s digital payments industry Concerns Coinbase CEO

Reshab Agarwal

Reshab is a tech-enthusiast who likes to write about all things crypto. He is a Bitcoin bull and believes in a decentralized future of finance. Follow him on Twitter for more!

Recommended For You

Trump-Appointed Officials Denied Entry to U.S. Copyright Office Amid Leadership Shake-Up

by Harikrishnan A
May 13, 2025
0
Trump-Appointed Officials Denied Entry to U.S. Copyright Office Amid Leadership Shake-Up

A pair of unexpected visitors claiming to be newly appointed Trump administration officials caused confusion at the U.S. Copyright Office this week. The incident follows a wave of...

Read more

Qatar’s $400 Million Jet Gift to U.S. for Trump’s Use as Air Force One Raises Eyebrows

by Harikrishnan A
May 13, 2025
0
Trump Warns Google will be “shut down” if it’s not Careful

President Donald Trump is set to receive a lavish gift from the royal family of Qatar—a Boeing 747-8 jet reportedly worth $400 million. The 13-year-old aircraft, often described...

Read more

Lehigh County Halts New Tesla Investments Over Musk’s Political Focus and Company Decline

by Harikrishnan A
May 13, 2025
0
Tesla Owner Burns Down Car and House After Plugging Directly Into Power Line

Lehigh County in eastern Pennsylvania has voted to stop purchasing new Tesla stock, citing concerns over the automaker’s declining financial performance and CEO Elon Musk’s increasingly political public...

Read more
Next Post
Billionaire launches new start-up which is likely to reverse the aging process

Dominance of China's digital payments industry Concerns Coinbase CEO

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook flipkart funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?