FTX Judge Declines to Tap Bankruptcy Examiner to Probe Collapse

An outside investigation of the collapse of FTX Group would likely cost creditors more than $100 million and interfere with the company’s effort to repay its debts, a federal judge said Wednesday in refusing to appoint a bankruptcy examiner to probe the collapse of the crypto exchange.

US Bankruptcy Judge John Dorsey rejected a request from the US Trustee, the federal watchdog that monitors corporate bankruptcies, to appoint the examiner. The US Trustee had argued that an outside investigation is necessary for the public to get a comprehensive view of the firm’s downfall.

“Every dollar spent on administrative expenses is ...