U.S. District Judge Colm F. Connolly referred the topic of appointing an impartial examiner to investigate FTX to the Third Circuit Court of Appeals.

In a Tuesday ruling, Connolly stated he had “no different nonetheless to grant the Trustee’s motion” and hand the case over to the appellate court.

The U.S. Trustee Andrew Vara, which represents the interests of the U.S. Division of Justice (DOJ), requested an appeal after a financial slay court rejected a motion filed in December to nominate an examiner into the crypto alternate.

In the Feb. 15 listening to, financial slay resolve John Dorsey dominated that the appointment of an examiner would possibly well be an pointless burden on FTX’s debtors.

“There’s no ask that if an examiner is appointed here, the worth of the examination given the scope rapid by the Trustee on the listening to, would possibly well be within the tens of thousands and thousands of bucks, and would seemingly exceed a hundred million bucks,” said Dorsey on the time.

Legal professionals for the FTX financial slay estate also estimated that the worth of an appointed examiner would fee shut to, and even exceed, a figure of $100 million. The FTX legal professionals’ estimates were made in an objection to the Trustee’s motion, which was belief to be one of three objections filed on the the same day. The different objections were filed by FTX’s legit committee of creditors and the Joint Provisional Liquidators, which signify FTX’s Bahamas-based mostly entity.

A community of four U.S. Senators grasp assuredly identified as for an impartial examiner’s investigation into FTX, arguing that the legal professionals representing the alternate and aiding the financial slay estate cannot be belief a pair of disinterested occasion.

In a Jan. 9 letter to Judge Dorsey, Senators John Hickenlooper (D-Colo.), Thom Tillis (R-N.C.), Elizabeth Warren (D-Mass.) and Cynthia Lummis (R-Wyo.) stated that the legislation agency Sullivan & Cromwell had legally represented FTX for years sooner than the alternate declared financial slay, and rapid that the agency would possibly well furthermore grasp some responsibility for the hurt wrecked on the firm’s victims.

“Put bluntly, the agency is exclusively no longer ready to characterize the files mandatory to make certain that self perception in any investigation or findings,” stated the Senators.