Law firm Sullivan & Cromwell will hear about FTX’s bankruptcy on Friday.

Law firm Sullivan & Cromwell will hear whether it can investigate FTX, Sam Bankman-Fried’s empire. Infamous ex-billionaire?

bankruptcy court judge It will hear arguments on Friday about whether such law firms were too involved with FTX before it exploded.

Earlier, the parties overseeing FTX’s bankruptcy proceedings filed an objection against Sullivan & Cromwell, along with two other firms acting as advisors to FTX debtors. A group of U.S. senators are also questioning Sullivan & Cromwell.

“Sullivan & Cromwell has filed to appoint FTX Group bankruptcy counsel,” Warren Winter, an FTX client with $350,000 stranded on the platform, wrote in the court filing. and objected to the appointment, while another FTX client, Richard Brummond, also objected.

“Sullivan & Cromwell was not only an unsuitable candidate for appointment as FTX Group bankruptcy adviser, but was also a target of investigation. The appointment as a consultant would be detrimental to assets. and undermines the faith of creditors and the public in the bankruptcy process,” Winter added.

FTX CEO John Ray, who took over the company in November Argued in court filings that removing Sullivan & Cromwell from the case could undermine its efforts. “Severe” or “irreparable” claims to creditors and customers

“My beneficiary counsel has worked tirelessly and non-stop for the last 70 days, and they are not the villains in these cases,” Ray said in a court statement.

Some FTX debtors also condemned Winter and Brummond’s objections as “unfounded,” and an official committee of unsecured creditors in the FTX case filed a statement in support of Sullivan & Cromwell’s role.

FTX was never a loyal customer of Sullivan & Cromwell, but the firm did advise FTX, as court documents show. FTX paid Sullivan & Cromwell $8.5 million to work on issues including the acquisition of LedgerX, The bankruptcy of crypto lender Voyager and regulatory concerns over the collapse of Terra Luna.

The law firm is still relatively close to Bankman-Fried Former FTX executives as discussed inblog postMost recently, he called Sullivan & Cromwell “one of FTX International’s two main law firms. before bankruptcy” and “Primary Law Firm of FTX US”

At the heart of Sullivan & Cromwell’s conflict is the law firm. Will it be able to adequately investigate the collapse of FTX on behalf of the debtor? Because the company used to advise exchanges before the collapse.

refer : LINK
picture LINK

source site