FTX creditor committee hires Paul Hastings LLP for bankruptcy proceedings: Report

After taking pitches from galore instrumentality firms, the nine-member committee representing unsecured creditors of the disgraced crypto speech FTX has decided connected a ineligible adviser, the Wall Street Journal reported connected Dec. 21. 

Global instrumentality steadfast Paul Hastings LLP was hired to look aft the interests of unsecured creditors successful the bankruptcy case, including millions of FTX's customers. According to sources from the newspaper, a process to prime a fiscal advisor is besides underway.

The committee of FTX creditors was appointed connected Dec. 16 by the U.S. Justice Department. Its members see companies successful the cryptocurrency sector, specified arsenic Pulsar Global, Coincident Capital International, and Wintermute Asia.

FTX volition beryllium liable for paying ineligible fees related to the bankruptcy proceedings affecting customers.  

Paul Hastings was founded successful 1951 successful the United States and has offices passim Asia, Europe, and Latin America, with implicit 450 firm lawyers according to its website.

FTX's caller absorption is expected to marque a tribunal quality successful January, noted the Journal. Some of its concern units are already disposable for sale, specified arsenic Embed Financial Technologies, LedgerX, FTX Japan and FTX Europe.

Related: Third parties could instrumentality FTX funds straight to customers: Law firm

Unsecured customers tapped the instrumentality steadfast connected the aforesaid time FTX co-founder Gary Wang and erstwhile Alameda Research CEO Caroline Ellison pleaded blameworthy to national fraud charges. Further, the United States Securities and Exchange Commission (SEC) charged Ellison and Wang for their roles successful a "multiyear strategy to defraud equity investors successful FTX." The SEC is besides investigating different securities instrumentality violations and different individuals and entities progressive successful the misconduct.

The exchange's erstwhile CEO Sam Bankman-Fried was besides nether custody of the Federal Bureau of Investigation (FBI) successful a fast-paced improvement pursuing FTX's illness astir 40 days ago. As Cointelegraph reported, Bankman-Fried has been granted bail connected a $250 cardinal bond.

Bankman-Fried is accused of ligament fraud, conspiracy to perpetrate wealth laundering, conspiracy to perpetrate ligament fraud, commodities and securities fraud and run concern violations. If convicted of each counts, helium could look 115 years successful prison.

For allegedly violating commodity laws and defrauding investors, the FTX laminitis faces further charges from the Commodity Futures Trading Commission and the Securities and Exchange Commission.