U.S. Trustee challenges Delaware Bankruptcy Court’s ruling in FTX case, seeks reversal

TL;DR Breakdown

  • The U.S. Trustee has directed the Delaware bankruptcy court to reverse its ruling on the independent examiner’s decision in the FTX bankruptcy case.
  • The court rejected the appointment request despite meeting the criteria for appointing an examiner, citing potential high costs and delays.
  • The DOJ Trustee argues that the alleged costs are insufficient justification for deviating from the statutory requirement of appointing an examiner.

In a court filing on Wednesday, the U.S. Trustee, a Department of Justice (DOJ) branch, directed the Delaware bankruptcy court to reverse its previous ruling on the independent examiner’s decision in the FTX bankruptcy case.

According to reports, the Trustee has stated that the bankruptcy court erred in its ruling during a court hearing held in February. The court had rejected the appointment request in a case where the criteria for appointing an examiner were met, including the requirement that the bankrupt estate has over $5 million in “qualifying liabilities.”

In the February hearing, Judge John Dorsey from the Delaware bankruptcy court took the initiative by siding with the FTX estate. During the proceedings, Dorsey argued that the ongoing case and investigation could incur costs exceeding $100 million. Additionally, Dorsey emphasized that the inquiry would inevitably result in a slowdown of the proceedings.

In response to complaints raised by the parties involved in the FTX case regarding the purported costs of appointing an examiner, DOJ Trustee Andrew R. Vara emphasized that such expenses, whether alleged or not, do not provide sufficient justification to deviate from the statutory requirement of appointing an examiner when the statutory criteria are met. This stance was expressed by Vara in the filing, taking into account both legal and practical considerations.

The filing came as a surprising development after the FTX crypto enterprise filed for bankruptcy in November, sending shockwaves throughout the cryptocurrency industry. Notably, the founder of FTX, Sam Bankman-Fried, is currently facing criminal charges in the United States.

The case has garnered significant attention and scrutiny, making the appointment of an examiner a crucial step in the ongoing proceedings.

This comes after the emergence of evidence provided by Daniel Friedberg, a former executive at FTX, a class-action lawsuit has been initiated against celebrities who are accused of endorsing the now-defunct FTX exchange.

Friedberg’s testimony has revealed that promotional activities for FTX originated from Florida, which challenges the claims, suggesting that the Miami court lacks jurisdiction and that the allegations are unrelated to Florida. This new evidence introduces a creative perspective and strengthens the association between the claims and the state of Florida.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:U.S. Trustee challenges Delaware Bankruptcy Court’s ruling in FTX case, seeks reversal

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年5月19日 12:03
Next 2023年5月19日 13:38

Related articles

  • US prosecutors investigate misuse of Puerto Rico’s tax breaks

    TL;DR Breakdown US prosecutors have teamed up with the IRS to investigate traders guilty of misusing Puerto Rico’s tax breaks. The IRS is looking into fund managers and wealthy crypto traders. Description In recent developments, US prosecutors, in collaboration with the Internal Revenue Service (IRS), are reportedly conducting investigations into wealthy crypto traders and fund managers suspected of illegally benefiting from Puerto Rico’s tax breaks. These tax breaks, introduced in 2012, have attracted over 5,000 American individuals to relocate to the island, enticed by the opportunity to … Read more In recent developments, US prosecutors, in collaboration with the Internal Revenue Service (IRS), are reportedly conducting investigations into wealthy crypto traders and fund managers suspected of illegally benefiting from Puerto Rico’s tax breaks. These tax breaks, introduced in 2012, have attracted over 5,000 American individuals to relocate to the island, enticed by the opportunity to save on federal income tax. US prosecutors teamed up IRS for the investigation According to a Bloomberg report published on June 12, US prosecutors are actively pursuing civil and criminal cases against hedge fund managers,…

    Article 2023年7月14日
  • Miami Mayor Francis Suarez set to accept crypto for 2024 presidential campaign

    TL;DR Breakdown Miami Mayor Francis Suarez has announced that his presidential campaign will accept crypto donations. Cryptocurrency’s evolving role in political fundraising. Description In a groundbreaking move, Miami Mayor Francis Suarez, has announced his decision to accept cryptocurrency donations for his 2024 presidential campaign. Known for his pro-crypto stance and ambition to challenge incumbent President Joe Biden, Suarez unveiled this development during a recent Coindesk TV broadcast. Suarez’s foray into the world of digital currencies underscores his commitment … Read more In a groundbreaking move, Miami Mayor Francis Suarez, has announced his decision to accept cryptocurrency donations for his 2024 presidential campaign. Known for his pro-crypto stance and ambition to challenge incumbent President Joe Biden, Suarez unveiled this development during a recent Coindesk TV broadcast. Suarez’s foray into the world of digital currencies underscores his commitment to embracing innovative technologies and promoting democratized opportunities for wealth creation. The Miami Mayor wants his campaign funds immune to manipulation By accepting cryptocurrency donations, he aims to ensure that campaign funds remain immune to manipulation driven by ulterior motives or political agendas. However,…

    Article 2023年8月7日
  • Cardano’s Hydra Head Scaling Solution Receives Major Upgrade

    TL;DR Breakdown Cardano’s Hydra Head scaling solution has been upgraded to version 0.11.0, becoming fully isomorphic to Layer-1 (L1) with the addition of timed transaction support. The upgrade improves the protocol’s functionalities, including external wallet commits, and demonstrates Cardano’s commitment to achieving its scaling goals. Description Cardano‘s groundbreaking scaling solution, Hydra Head, has recently undergone a significant upgrade, solidifying its position as a cutting-edge Layer-2 (L2) protocol. With the introduction of timed transaction support and other notable enhancements, the latest version, 0.11.0, promises to push the protocol closer to its performance expectations. This upgrade marks an important milestone for Cardano and … Read more Cardano‘s groundbreaking scaling solution, Hydra Head, has recently undergone a significant upgrade, solidifying its position as a cutting-edge Layer-2 (L2) protocol. With the introduction of timed transaction support and other notable enhancements, the latest version, 0.11.0, promises to push the protocol closer to its performance expectations. This upgrade marks an important milestone for Cardano and sets the stage for further advancements in the platform’s scaling capabilities. Contents hide 1 The Evolution of Hydra Head: Version 0.11.0…

    Article 2023年7月4日
  • Celsius Network’s bold bid selection revealed

    TL;DR Breakdown Celsius Network has announced that it has selected Fahrenheit’s proposal as the winning bid to manage a new entity owned by its creditors.  Under the plan, Celsius’ account holders will own 100% of the new equity in NewCo. Celsius Network also confirmed that it has secured a backup bid from the Blockchain Recovery Investment Consortium (BRIC), an affiliate of Gemini Trust. Crypto lender Celsius Network, which filed for Chapter 11 bankruptcy protection in July, has announced that it has selected Fahrenheit’s proposal as the winning bid to manage a new entity owned by its creditors. The Fahrenheit consortium, which includes venture capital firm Arrington Capital, will provide the necessary capital, management team, and technology to establish and operate the new company, referred to as NewCo. Under the plan, Celsius’ account holders will own 100% of the new equity in NewCo. The new company will be overseen by a board of directors, with a majority appointed by the creditors. Celsius Network also confirmed that it has secured a backup bid from the Blockchain Recovery Investment Consortium (BRIC), an affiliate…

    Article 2023年5月27日
  • Bitcoin holdings on exchanges continue to decline drastically

    TL;DR Breakdown Bitcoin held on crypto exchanges has continued to witness a massive decline. Implications for custodianship and investor confidence. Description In a notable shift within the cryptocurrency landscape, the quantity of Bitcoin (BTC) held in addresses linked to centralized exchanges has reached its lowest point in over five years. This development, while reflecting a growing market sophistication, brings about both positive and negative implications for the crypto industry. Cryptoquant report shows a 4% decline in … Read more In a notable shift within the cryptocurrency landscape, the quantity of Bitcoin (BTC) held in addresses linked to centralized exchanges has reached its lowest point in over five years. This development, while reflecting a growing market sophistication, brings about both positive and negative implications for the crypto industry. Cryptoquant report shows a 4% decline in BTC holdings According to on-chain data analytics service CryptoQuant, the exchange reserve of Bitcoin has witnessed a 4% decline this month, settling at 2 million BTC (equivalent to $54.5 billion). This figure represents the lowest exchange reserve since early January 2018. This trend is indicative of…

    Article 2023年9月1日
TOP