Multiple U.S. states jointly request the appointment of an independent examiner for FTX bankruptcy case

Odaily星球日报 · 2023-02-02T00:50:03.000Z

Odaily Planet Daily News Officials from many states in the United States jointly initiated a motion asking the federal bankruptcy judge to appoint a third-party examiner to review FTX’s financial status to improve the transparency of FTX’s assets. The initiative is led by the Texas State Securities Commission, Alaska, Arkansas, California, Florida, Hawaii, Idaho, Illinois, Kentucky, Maine, Maryland, New Hampshire, New Jersey, North Carolina Regulators from states, Oklahoma, Tennessee and Washington, D.C. joined. Officials claimed that under the Bankruptcy Code, "due to the lack of transparency into the debtor's financial situation and assets and the regulatory investigation continuing, the appointment of an examiner to provide specific guidance on his duties is not only appropriate but also in the best interests of creditors," And it’s mandatory.” If the court ultimately appoints an examiner, that examiner will provide the court with a detailed report on the financial condition of FTX, Alameda, and most other FTX subsidiaries around the world, rather than the court relying solely on FTX’s current leadership and lawyers hired to liquidate assets in the Bahamas. (The Block)

Odaily Planet Daily reported that officials from multiple states in the United States jointly launched a motion to ask a federal bankruptcy judge to appoint a third-party examiner to review FTX's financial situation to increase the transparency of FTX's assets. The motion was led by the Texas Securities Commission, and regulators from Alaska, Arkansas, California, Florida, Hawaii, Idaho, Illinois, Kentucky, Maine, Maryland, New Hampshire, New Jersey, North Carolina, Oklahoma, Tennessee and Washington, D.C. joined. Officials claimed that according to the bankruptcy law, "due to the lack of transparency of the debtor's financial situation and assets, regulatory investigations are still ongoing, and the appointment of an examiner to provide specific guidelines on his duties is not only appropriate, but also in the best interests of creditors, and mandatory." If the court eventually appoints an examiner, the examiner will provide the court with a detailed report on the financial situation of FTX, Alameda, and most other FTX subsidiaries around the world, rather than the court relying solely on FTX's current leadership and lawyers hired to liquidate Bahamian assets. (The Block)