FTX Still Needs Bankruptcy Examiner to Probe Collapse, DOJ Says

A federal bankruptcy court should have considered its ability to control the costs of an independent investigation of FTX before refusing to appoint such an examiner, according to an attorney for the US watchdog that monitors corporate bankruptcies.

The FTX case meets statutory requirements for a mandatory appointment of such an examiner, and the court has “significant discretion to set the scope, duration, and cost of the ultimate examination,” Brian Springer of the US Department of Justice, an attorney for the watchdog known as the US Trustee, said Wednesday in a hearing before a three-judge panel of the US ...