by Pam Martens and Russ Martens
Wall Street on Parade
[Editor’s Update: Judge Dorsey denied the motion by the U.S. Trustee for the appointment of an independent examiner at this morning’s hearing. In making his ruling, he cited the arguments made by Sullivan & Cromwell.]
Judge John Dorsey is the presiding judge in the U.S. Bankruptcy Court in Delaware where Sam Bankman-Fried’s collapsed crypto exchange, FTX, filed its Chapter 11 bankruptcy petition. The U.S. Trustee, who provides oversight on behalf of the U.S. Department of Justice in bankruptcy cases, filed a motion on December 1 of last year requesting the appointment of an independent examiner in the FTX bankruptcy case, reminding the court that the appointment is mandatory under bankruptcy law if requested by the U.S. Trustee and debts exceed $5 million. Today marks the 76th day that this critical issue has been pending before this court.
The Big Law firm, Sullivan & Cromwell, for whom Judge Dorsey signed an order making it lead counsel in the FTX bankruptcy case, despite a mountain of conflicts of interest, has argued aggressively against the appointment of the independent examiner.