FTX Bankruptcy Judge Agrees Independent Examiner Would Mean More Risk

Appointing an independent examiner in the FTX bankruptcy proceedings “would create an increased risk of further loss through inadvertent disclosures or hacking,” Judge John Dorsery said in a hearing on Wednesday.

Dorsey, who’s overseeing the crypto exchange’s Chapter 11 case in Delaware, denied a motion from the U.S. Trustee to appoint an examiner. He cited concerns about security and cost, echoing arguments made independent-examiner-assets-risk” data-ylk=”slk:last week” class=”link “last week by attorneys representing FTX, the creditor committee, and the joint provisional liquidators.

When a bankruptcy judge appoints an independent examiner, debtors have to pay the bill. That means FTX would have had to pay for an investigation that Dorsey estimated could have cost more than $100 million.

“It is important to keep in mind that while we talk about the cost of an investigation being borne by the debtors, we are actually talking about the cost being borne by the creditors,” Dorsey said during the hearing. “Every dollar spent in these cases on administrative expenses is $1 less to the creditors.”

FTX Bankruptcy Lawyers Say Independent Examiner Would Put Assets at Risk

To bolster its argument against an examiner, the FTX legal team had newly appointed FTX CEO

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Details On Tammy Sytch’s Lawyer Trying To Withdraw As Legal Counsel

Details On Tammy Sytch’s Lawyer Trying To Withdraw As Legal Counsel

Tammy Sytch currently awaits trial on charges of DUI manslaughter. So what’s the latest on the case? Sytch’s lawyer is now attempting to get himself as far away from the case as possible.

As reported by sytch-attorney-seeks-to-withdraw-from-her-dui-manslaughter-case.html?p=1″PWInsider early Monday morning, Sytch’s lawyer, Steven deLaroche, has filed a motion requesting he be allowed to withdraw himself from being Sytch’s legal counsel going forward. The motion was filed last Thursday, June 16, just days after Sytch filed a motion to dismiss the civil suit against her related to her DUI Manslaughter case.

In his motion, deLarcoche cited several reasons for his request to be withdrawn. Chief among them was an impasse between him and Sytch regarding the handling of Sytch’s case, one that deLaroche noted made it impossible for them to continue to work together cooperatively.

deLaroche also claimed that Sytch had not complied with the terms of the employment agreement between them, and noted Sytch would not be prejudiced against if he was permitted to withdraw. As of this writing, no ruling has been made regarding deLaroche’s motion to withdraw.

Sytch was arrested in May on one count of DUI manslaughter, one count of causing death while operating

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