Judge Delays Decision on Appointment of Independent Auditor Due to Cost Concerns –
Judge John Dorsey has delayed his decision on whether to appoint an independent examiner in the FTX case. At the last hearing, Dorsey acknowledged that the cost to debtors could reach tens of millions of dollars. Currently, the bankruptcy judge hopes that the problem will be solved by an amicable solution between both parties. However, a representative of the Trustee of the US Department of Justice claimed that the appointment of an independent auditor was mandated by Congress and was no longer under Dorsey’s authority.
FTX bankruptcy hearing highlights cost concerns and calls for impartiality
Reported three days ago Bitcoin.com News of the US Trustee in the FTX Bankruptcy Case and the Government’s Request to Appoint an Independent Auditor. At the last hearing, attorneys for Sullivan & Cromwell’s FTX argued that the venture could be costly.
John J. Ray III, FTX’s new CEO, estimates that spending could range from $90 million to $100 million. James Bromley of Sullivan & Cromwell said: “It’s going to be duplication of effort and significant expense. We don’t have enough money to repay all of our creditors.”
Bromley claimed there was “no evidence” that outside experts were more impartial than FTX’s current experts. FTX debtors have a number of experts working on the case, including cybersecurity firm Sygnia. FTX executives and legal teams work with law enforcement officers and leading government regulators.
Ray, FTX’s new CEO, earned around $690,000 from his work last year and continued to work through the Christmas and holiday seasons. Juliet Sarkessian, representative of the US Trustee, described the situation at FTX as a “dumpster fire” and stressed that the appointment of an examiner in these circumstances was mandated by Congress.
Sarkessian’s comments align with the letter sent to the court by Senators Cynthia Lummis (R-WY), Thom Tillis (R-NC), Elizabeth Warren (D-MA) and John Hickenlooper (D-CO). The senators urged the court to appoint an independent examiner, stressing that numerous questions “remain unanswered.” Sarkessian believes that an auditor can uncover information that would otherwise go undetected and could reveal misconduct by certain FTX employees.
During his testimony, FTX CEO Ray described the bankruptcy as “pure hell” when listing his expenses as of 2022. He also noted that FTX was unlike anything he’d ever experienced, and that former FTX executives “didn’t keep a single list of anything.” ”
What are your thoughts on the ongoing FTX bankruptcy proceedings and the possible appointment of an independent auditor? Share your insights in the comments section below.
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Source: Crypto News Deutsch
