FTX Bankruptcy Lawyers Say Independent Examiner Would Put Assets at Risk

The judge overseeing the FTX bankruptcy proceeding still hasn’t decided whether he will appoint an independent examiner after a 4-hour hearing that included testimony from FTX CEO John Ray III.

Judge John Doresey, who’s overseeing the bankruptcy proceedings, said Monday he’s asked the attorneys representing FTX, the unsecured creditor committee, U.S. Trustee and the Joint Public Liquidators of the Bahamas to discuss “a consensual resolution.” The next FTX court hearing is scheduled for Wednesday, but there’s no sign yet the judge will make a ruling then.

Ray was appointed when crypto exchange FTX filed for bankruptcy and founder Sam Bankman-Fried stepped down on November 11. The company, once an influential giant in the industry, is accused of having commingled client funds with those of its sister company, Alameda Research—a crypto trading firm also founded by Bankman-Fried.

Ray said during his testimony on Monday that he and his team have been fielding daily requests from state and federal investigators. Ray also testified that he did not find examiner’s reports helpful in two prior bankruptcies he’s overseen, Enron and Residential Capital, adding that “the reports were somewhat ambivalent in the conclusionary sense.”

The FTX legal team has been arguing that the cost

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The Golden Age of the Knowledge Management Lawyer

The COVID pandemic heralded massive changes in the legal profession but perhaps none more than a renewed respect for the knowledge management lawyers who were pivotal in the transformation to the all-remote practice. Some may even say the last two years have been the golden age for unsung knowledge management lawyers.

“What was incredibly significant is how our profile and how people’s need for our services … just shot through the roof,” said Ginevra Saylor, the director of innovation and knowledge programs at Gowling WLG in Toronto.

“I think that COVID has demonstrated that focusing on core KM will stand you in good stead if you have to pivot at any given time,” said Adriana De Marco, Stikeman Elliott’s senior director of knowledge management, education, and innovation.

Stikeman Elliott had a “mature” knowledge management program, said De Marco, but during COVID they took many of their library and electronic resources and “repackaged them to make them more accessible for lawyers because we knew that that would be an evolving need.”

Sukesh Kamra, the chief knowledge and innovation officer at Torys, a Canadian Global 200 firm, said the need for knowledge management lawyers was “heightened” during the pandemic. Previously a law

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