FTX Bankruptcy Court Hears Arguments For An Independent Examiner To Investigate Collapse

The FTX CEO went on to say that the company’s records remained tangled, arguing that allowing external access to the platform’s data and systems could prove a security risk. Indeed, Ray affirmed that FTX’s crypto assets are too “complex and too fragile” to expose to an independent examiner, re-echoing statements from previous hearings about the shoddy accounting and corporate practices in Bankman-Fried’s crippled crypto empire. 

Trustee Attorney Pushes For Independent Examiner

U.S. Trustee attorney Juliet Sarkessian presented statements to prove that the examiner’s report in the Enron case was useful at the time, but the Judge ultimately overruled the argument as the records could not be authenticated. 

At press time, the bankruptcy Judge had not yet reached a decision to appoint an independent examiner or not. Sarkessian pushed for the court to appoint the examiner today and decide on the examiner’s scope of access during a later hearing.

Sarkessian also opined that an examiner would cost less than CEO Ray’s bankruptcy team. Reports said the FTX bankruptcy employees charge around $2000+/hour. The judge seemed unconvinced by the argument.

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