- Judge John Dorsey said the new FTX bankruptcy probe should be limited in scope and length.
- The judge said an extended inquiry would be a recipe for a runaway cost that won’t yield anything new.
- Dorsey mandated FTX and its creditor’s counsels to work with the US Trustee on the appointment of an examiner.
US Bankruptcy Judge John Dorsey, the judge overseeing the FTX Chapter 11 proceedings, has moved to restrict the scope and expense of a fresh independent investigation in the crypto exchange, Bloomberg reported. The judge argued that another multimillion-dollar inquiry should not disrupt the defunct cryptocurrency exchange’s bankruptcy case.
The move by the judge came after a Federal Appeals Court in Philadephia ordered the appointment of an examiner for the bankruptcy process. However, the order which came earlier in the month left the details of any investigation up to Dorsey.
Attorneys for FTX and its creditors contended that the fresh inquiry mandated by the appeal court had to be constrained in length and scope. On the other hand, the Office of the US Trustee argued that the cost, length, and scope of the new investigation should be left open unti…
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