A new decision has been announced in the case of FTX, which went bankrupt dramatically last year.
The federal court in Delaware had previously been warned that an independent investigation could cost $100 million. The court used its decision in favor of not appointing an auditor.
Appeal Decision in FTX Independent Investigation
The US government has challenged the judicial decision not to appoint an independent auditor to investigate the collapse of bankrupt crypto exchange FTX.
The U.S. Board of Trustees, a branch of the Department of Justice (DOJ), had previously argued that any lawsuit of this size requires an independent investigation, despite warnings that bankruptcy law could cost $100 million. In its arguments, the panel stated that an independent auditor could examine whether those responsible for mismanagement at FTX were still part of the company.
A bipartisan group of US senators also supported this investigation proposal.
However, on February 15, Delaware-based US bankruptcy court Judge John Dorsey, who oversaw FTX’s liquidation, agreed with the company’s new management that an independent review would be costly to delay any resolution of the case. This decision was thus appealed.
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