Feb 16, 2023
Judge Dorsey Denies Motion to Appoint Examiner in FTX Bankruptcy Case
On February 15, Judge John Dorsey of the United States Bankruptcy Court for the District of Delaware denied a motion to appoint an independent examiner for FTX. The judge cited the additional expense of such an appointment, as well as the experience of FTX’s current CEO, John Ray.
Judge Dorsey stated that the appointment of an examiner would be an “unnecessary burden” on FTX’s debtors and creditors, and that it would cost tens of millions of dollars, potentially exceeding one hundred million dollars. He added that “every dollar spent in these cases on administrative expenses is a dollar less to the creditors.”
The motion to appoint an independent examiner was filed by U.S. Trustee Andrew Vara on December 1, with the aim of exploring whether software was allegedly used to conceal the misuse of FTX user funds, as well as the absence of proper recordkeeping at the firm.
Judge Dorsey noted that FTX’s current leadership, appointed by CEO John Ray, is independent of prior management, and he cited Ray’s experience taking over other companies “in dire financial condition.” The judge also mentioned that debtors in the case have issued subpoenas to FTX insiders, including Bankman-Fried, ordering the former executives to turn over certain documents and information.
FTX is a web3 agency that specializes in NFT marketing, promotion, and selling. It has been involved in the crypto space since its inception in November 2022, and has become a leader in the NFT marketing space, offering services such as Twitter NFT marketing and NFT marketing agency services.
The firm has been a major player in the NFT space, helping to promote and sell digital assets. With the denial of the motion to appoint an examiner, FTX can continue to focus on providing the best NFT marketing services to its customers.
The decision by Judge Dorsey is a positive one for FTX and its customers, as it allows the firm to continue to provide its services without the additional expense of an examiner. It is also a positive sign for the crypto industry as a whole, as it shows that the courts are willing to take into account the unique circumstances of the industry when making decisions.
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