{"id":543766,"date":"2023-01-26T08:02:13","date_gmt":"2023-01-26T05:02:13","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ftx-lawyers-examiner-could-cost-100m-and-provide-no-benefit\/"},"modified":"2023-01-26T08:02:13","modified_gmt":"2023-01-26T05:02:13","slug":"ftx-lawyers-examiner-could-cost-100m-and-provide-no-benefit","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ftx-lawyers-examiner-could-cost-100m-and-provide-no-benefit\/","title":{"rendered":"# FTX lawyers: Examiner could cost $100M and \u2018provide no benefit\u2019"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3bbe8560ff1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3bbe8560ff1\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/ftx-lawyers-examiner-could-cost-100m-and-provide-no-benefit\/#%E2%80%9D_FTX_lawyers_Examiner_could_cost_100M_and_%E2%80%98provide_no_benefit_%E2%80%9C\" >&#8221; FTX lawyers: Examiner could cost $100M and \u2018provide no benefit\u2019 &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_FTX_lawyers_Examiner_could_cost_100M_and_%E2%80%98provide_no_benefit_%E2%80%9C\"><\/span>&#8221; FTX lawyers: Examiner could cost $100M and \u2018provide no benefit\u2019 &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDEvYzIzY2VhNWMtZjI0NC00OTkxLWI5YTEtN2I2ZGVhYmY2MzUyLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5a4050f8>An investigation into FTX\u2019s collapse by an examiner could cost the firm upwards of $100 million without providing any benefit to creditors or equity holders, argues lawyers representing the bankrupt crypto exchange.\u00a0<\/p>\n<p>The arguments were part of a Jan. 25 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/restructuring.ra.kroll.com\/FTX\/Home-DownloadPDF?id1=MTQ0MDM1Mg==&amp;id2=-1\">objection<\/a> to a motion from the United States Trustee in December, which called for the judge to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>oint an independent examiner to ensure any investigations are transparent and their findings made public. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">This will be fascinating.<\/p>\n<p>4 Senators submitted a letter asking for an Independent Examiner.  Will they do more?<\/p>\n<p>Several States have entered the FTX case. Will they lend support for an Examiner? <\/p>\n<p>The SEC asked for the Independent Examiner in Enron.  Will they say anything here? <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/KiSZKYonCD\">https:\/\/t.co\/KiSZKYonCD<\/a><\/p>\n<p>\u2014 MetaLawMan (@MetaLawMan) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MetaLawMan\/status\/1618400153505001473?ref_src=twsrc%5Etfw\">January 26, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>FTX lawyers argued that creditors would not benefit from an examiner investigation which duplicates investigations led by FTX\u2019s CEO John J. Ray III, a committee of creditors, law enforcement agencies, and congress, adding:<\/p>\n<blockquote><p>\u201cThe appointment of an examiner, with a mandate to be determined, can be expected to cost these estates in the tens of millions of dollars. Indeed, if history is a guide, the cost could near or exceed $100 million.\u201d<\/p><\/blockquote>\n<p>The creditors committee, also known as The Official Committee of Unsecured Creditors, submitted their own <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/restructuring.ra.kroll.com\/FTX\/Home-DownloadPDF?id1=MTQ0MDM0NA==&amp;id2=-1\">objection<\/a> to the appointment of an independent examiner on Jan. 25, also citing the prohibitive costs involved and the investigations of various parties which are already underway.<\/p>\n<p>In the original motion, the U.S. Trustee had noted if the court was concerned about the duplication of work, it could allow the examiner to access existing work, adding:<\/p>\n<blockquote><p>\u201cAn examiner may also allow for a faster and more cost-effective resolution of these cases by allowing Mr. Ray to focus on his primary duty of stabilizing the Debtors\u2019 businesses while allowing the examiner to conduct the investigation.\u201d<\/p><\/blockquote>\n<p>Joint provisional liquidators in the Bahamas and FTX.US also <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/restructuring.ra.kroll.com\/FTX\/Home-DownloadPDF?id1=MTQ0MDM1MQ==&amp;id2=-1\">opposed<\/a> the appointment on Jan. 25, pointing to a section of the bankruptcy code which allows the judge to appoint an examiner \u201cas is appropriate,\u201d and arguing that the unnecessary costs and delays which would accompany the appointment of an examiner renders it \u201cinappropriate.\u201d<\/p>\n<p><strong>Related: <\/strong><strong><em>Breaking: BlockFi uncensored financials reportedly shows $1.2B FTX exposure<\/em><\/strong><\/p>\n<p>The appointment of an independent examiner has been a key topic throughout FTXs bankruptcy trial.<\/p>\n<p>On Dec. 9 a group of four U.S. senators which included Elizabeth Warren wrote an open letter to Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware, claiming that FTX\u2019s counsel Sullivan &amp; Cromwell had a conflict of interest in the case and cast doubt over their ability to provide findings which inspire confidence.<\/p>\n<p>However, the judge ruled on Jan. 20 that there were no potential conflicts of interest sufficient to stop the law firm from continuing to act as FTX\u2019s counsel.<\/p>\n<p>The judge will decide whether to accept the appointment of an independent examiner in a court hearing on Feb. 6.<\/p>\n<p>Independent examiners are often appointed by bankruptcy courts to investigate details of complex cases brought before them, and have been appointed in other high-profile bankruptcy cases such as Lehman Brothers during the subprime mortgage crisis and the crypto exchange Celsius.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/ftx-lawyers-examiner-could-cost-100m-and-provide-no-benefit\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; FTX lawyers: Examiner could cost $100M and \u2018provide no benefit\u2019 &#8220; An investigation into FTX\u2019s collapse by an examiner could cost the firm upwards of $100 million without providing any benefit to creditors or equity holders, argues lawyers representing the bankrupt crypto exchange.\u00a0 The arguments were part of a Jan. 25 objection to a&#8230;<\/p>\n","protected":false},"author":1,"featured_media":543767,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-01\/c23cea5c-f244-4991-b9a1-7b6deabf6352.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[136596,135234,4978,117,71433,70934,67874],"class_list":["post-543766","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-celsius","tag-ftx","tag-bankruptcy","tag-business","tag-court","tag-regulation","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/543766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=543766"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/543766\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/543767"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=543766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=543766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=543766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}