• FTX lawyers have filed an objection to the US Trustee’s motion to appoint an independent examiner in the FTX bankruptcy case.
• The lawyers argue that the cost of an independent examiner would be too expensive and would not provide any unique content than what the newly appointed CEO John J. Ray III can provide.
• The Department of Justice is still pushing for an independent probe, citing that it would provide answers to creditors who have lost billions in the FTX scuffle.
The FTX bankruptcy case has been attracting attention from lawmakers, regulatory agencies, and several states ever since its implosion. In early December, the Department of Justice’s U.S. Trustee overseeing the case made a move to appoint an independent examiner to investigate the matter further.
However, FTX lawyers have objected to the motion, citing cost inefficiency. According to them, an independent examiner could cost the bankrupt company up to $100 million and would not provide any unique content than what the newly appointed CEO John J. Ray III can provide. In a recent hearing, the lawyers implied that the cost would not provide any necessary answers to creditors who have lost billions in the FTX scuffle.
The FTX lawyers also argued that the Task Force members are already cooperating well and that the costs of an examiner could be wasteful to the estate. They also noted that the lawyers are billing $2165 an hour, making the argument that an Examiner’s costs would be even more costly.
Despite the objections from the FTX lawyers, the Department of Justice is still pushing for an independent probe. They believe that the investigation would provide answers to creditors who have lost billions in the FTX scuffle. It remains to be seen how this legal battle will play out and whether or not an independent examiner will be appointed.