Bankrupt crypto alternate FTX filed a Jan. 17 response — authored by Sullivan & Cromwell (S&C) legal professionals — to the objections surrounding its retention of the legislation agency as an advisor.
FTX stated the legislation agency’s function on the bankrupt alternate was of “crucial significance,” citing how its data sharing with U.S. prosecutors and regulators led to the cost and arrest of Sam Bankman-Fried (SBF) and his accomplices.
In line with the submitting, claims that S&C’s earlier advisory function with the alternate may result in a possible battle of curiosity had been false because it has carried out a conflicts test process that confirmed it was a “disinterested particular person” within the case.
SBF beforehand accused the legislation agency of pressuring him to file for chapter due to the potential charges it stood to earn.
FTX CEO, unsecured collectors help Sullivan & Cromwell retention
Separate Jan. 17 filings from FTX CEO John Ray III and the Official Committee of Unsecured Collectors supported the transfer to retain Sullivan & Cromwell.
Ray stated the S&C group was important in bringing order to a chaotic scenario, including that he has additionally employed a brand new legislation agency to function counsel on issues to which S&C is likely to be conflicted.
Ray concluded:
“If the retention of any of S&C, Quinn or Alix had been to be denied, restricted or impaired for any motive, the curiosity of the Debtors’ prospects and collectors, in addition to the state and federal regulators and prosecutors with whom these advisors have interaction each day, can be severely, if not irreparably harmed.”
However, FTX’s unsecured collectors stated the U.S. Trustee’s objections had been based mostly on a misinterpretation of the Chapter code.
The collectors added that it has no objection to the retention of S&C as a result of the legislation agency has carried out a considerable quantity of labor and its efforts had been integral to the instances. The collectors additional argued that failure to retain the agency wouldn’t be in the very best pursuits of the estates.
Moreover, the collectors stated the agency has commenced its investigation into FTX’s downfall and “is working tirelessly to uncover the fraud in its entirety (and) get better as many belongings as potential.”
