Appeals court reverses judge’s ruling, orders appointment of independent examiner in FTX bankruptcy

By RANDALL CHASE
AP Business Writer

DOVER, Del. (AP) — A federal appeals court has ordered the appointment of an independent examiner in the bankruptcy case of FTX . The ruling comes amid concerns about widespread fraud preceding the collapse of the multibillion-dollar cryptocurrency exchange. A three-judge panel in Philadelphia issued the ruling Friday in an appeal filed by the U.S. bankruptcy trustee, who serves as a government watchdog in Chapter 11 reorganizations. Lawyers for the trustee had argued that FTX’s financial affairs and business operations, including allegations of unprecedented fraud leading to its collapse, should be reviewed by a disinterested person, not left to an internal investigation. A bankruptcy judge denied the trustee’s request last year, but the appeals court said the judge had no discretion to do so.