Bankman-Fried’s FTX to Get Bankruptcy Examiner to Probe Collapse: US Appeals Court

A federal appeals court on Friday ordered the appointment of an independent bankruptcy examiner to investigate the Nov. 2022 collapse of FTX, the cryptocurrency exchange once led by the convicted Sam Bankman-Fried. Reversing a lower ruling, the 3rd U.S. Circuit Court of Appeals in Philadelphia agreed with a government watchdog that appointing an examiner was mandatory under the U.S. Bankruptcy Code because of the large size of FTX’s case, including the alleged misappropriation of $10 billion of customer assets. It also said appointing an examiner reflected Congress’s intent to protect debtors and creditors in cases that have “great” public interest, an interest that should be taken into account in FTX’s Chapter 11 reorganization....