According to the Third Circuit, an independent investigation by an examiner will let the court “consider the greater public interest” in ruling on FTX’s reorganization plan.
Months after the first filing, the United States Court of Appeals for the Third Circuit ordered the judge overseeing the bankruptcy of cryptocurrency exchange FTX to appoint an independent examiner.
In a Jan. 19 opinion, three judges with the Third Circuit reversed a ruling from Judge John Dorsey with the U.S. Bankruptcy Court for the District of Delaware, requiring the court to appoint an examiner to oversee FTX’s case. In February 2023, Judge Dorsey denied a motion from the U.S. trustee in FTX’s bankruptcy case, Andrew Vara, to appoint an examiner, leading to the appeals process.
According to the judges, allowing an independent examiner to oversee the FTX bankruptcy case would provide greater transparency to potential investors “for the evolving and volatile cryptocurrency industry.” The Third Circuit said an independent investigation would allow the bankruptcy court to “consider the greater public interest” in rulings related to FTX’s reorganization plan.
