FTX Lawyers Object to US Trustee’s Motion for Examiner

• FTX lawyers have filed objections to the US Trustee’s motion for an independent examiner, citing unwarranted cost.
• The US Trustee overseeing the FTX bankruptcy case requested the court to initiate an independent probe in early December.
• The FTX lawyers implied in a recent hearing that the cost of an independent examiner would not provide the much-needed answer to creditors who have lost billions in the FTX scuffle.

The FTX bankruptcy case has been making headlines as U.S. lawmakers, several states, and regulatory agencies have all taken an interest in the situation. In the latest update, FTX debtors, the creditors committee, and the Bahamas Team (JPL) have all filed three objections to the US Trustee’s motion for an Independent Examiner.

The Department of Justice’s U.S. Trustee overseeing FTX’s bankruptcy case proposed the formation of an independent probe in early December, describing the FTX implosion as the fastest big corporate failure in American history. However, the FTX lawyers have objected to the formation of an independent examiner, claiming that it could cost the bankrupt company up to $100 million with no significant benefit.

At the recent hearing, the FTX lawyers argued that the cost of an independent examiner would not provide the much-needed answers to creditors who have already lost billions in the FTX scuffle. In addition, the lawyers pointed out the cooperation between the Task Force members, and the irony of lawyers billing $2165 an hour making the argument that an Examiner’s costs would be wasteful to the estate.

The court is yet to make a decision regarding the appointment of an independent examiner in the FTX bankruptcy case. If the court agrees to appoint an independent examiner, it will be a major milestone in the case as the examiner will be responsible for investigating the cause of FTX’s failure and providing an analysis of the financial condition of FTX. This will provide the creditors with more clarity regarding the case and allow them to make an informed decision on how to proceed with their claims.

FTX Lawyers Object to US Trustee’s Motion for Examiner
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