1 year ago
The erstwhile main regulatory serviceman of FTX has supported a question that would halt FTX from utilizing Sullivan & Cromwell LLC arsenic its pb bankruptcy counsel.
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A erstwhile FTX main lawyer has accused the company's US wide counsel of channeling concern to Sullivan & Cromwell (S&C) — the steadfast presently serving FTX arsenic bankruptcy counsel.
Daniel Friedberg, who was the main regulatory serviceman of FTX until helium resigned connected Nov. 8, made the allegations arsenic portion of a Jan 19. tribunal filing.
The filing was a declaration successful enactment of an FTX creditor’s objection to FTX’s program to proceed utilizing S&C arsenic its lawyers passim its bankruptcy case.
In the declaration, Friedberg alleges that FTX.US pb counsel Ryne Miller, a erstwhile spouse astatine S&C channeled concern towards his erstwhile instrumentality steadfast crossed galore cases, with Friedberg stating:
“Mr. Miller informed maine that it was precise important for him personally to transmission a batch of concern to S&C arsenic helium wanted to instrumentality determination arsenic a spouse aft his stint astatine the Debtors.”
Friedberg claims successful the filing that helium reminded Miller that his “allegiance” was to the debtor and not to S&C which helium suggested “continued to beryllium a occupation passim his work” astatine FTX.
Friedberg alleged aft Miller's hiring successful aboriginal 2020, Miller asked whether helium could prosecute his erstwhile instrumentality firm, to which Friedberg replied by saying it was Miller's occupation “to lone prosecute the champion extracurricular counsel for the job.”
Miller ended up engaging S&C to beryllium superior counsel for FTX.US, FTX Derivatives (formerly LedgerX), and Sam Bankman-Fried’s holding institution Emergent, wrote Friedberg.
He noted that S&C has besides acted arsenic idiosyncratic counsel to Bankman-Fried and different cardinal FTX executive, Nishad Singh.
Related: FTX CEO says helium is exploring rebooting the exchange: Report
While the filing is simply a declaration successful enactment of an FTX creditors objection to the retention of FTX lawyers Sullivan & Cromwell LLP, it makes a fig of accusations which were antecedently undisclosed.
Well, I conscionable finished speechmaking the Declaration of Daniel Friedberg.
It is just to accidental that this is 1 of the much shocking sworn statements I person work successful a bully agelong while.
If fractional of what Mr. Friedberg says is true, helium has conscionable blown the apical disconnected of this bankruptcy case.
English (US) 