The Law Firm Paul Weiss No Longer Represents SBF

The law firm Paul Weiss no longer represents FTX founder SBF. Paul Weiss announced on Friday that the firm has ceased representing SBF due to a conflict of interest.

Paul Weiss announced on Friday that it will no longer represent troubled crypto tycoon Sam Bankman-Fried due to conflicts of interest.

Bankman-Fried, the former CEO of the bankrupt crypto exchange FTX, is losing the firm’s assistance because the platform’s US lawyers believe he is interfering with restructuring attempts through “constant and disruptive tweeting.”

“Several days following the filing of the FTX bankruptcy, we told Mr. Bankman-Fried that conflicts had developed that barred us from representing him,” Paul Weiss counsel Martin Flumenbaum said in a statement.

FTX’s value plummeted last week, prompting probes from US and international regulators. On November 11, the platform filed for Chapter 11 bankruptcy. Paul Weiss no longer represents Bankman-Fried, according to Semafor.

Flumenbaum is a seasoned litigator whose previous clients include junk bond dealer Michael Milken and AIG. Christian Larsen, the chairman of the Ripple Labs cryptocurrency exchange, is currently represented by him.

The company is led by John J. Ray, a restructuring lawyer who managed the liquidation of Enron Corp. FTX has hired Wall Street law firm Sullivan & Cromwell to represent it in bankruptcy proceedings and investigations.

According to court documents, the trade with the legal firm occurred as the firm’s cash issue became “increasingly grave.” The assets and liabilities of FTX and its broad network of associated entities, including trading company Alameda Research, are believed to be between $10 billion and $50 billion. Bankman-assets, Fried’s which were previously valued $16 billion, have been wiped completely.

SBF is now being investigated from different angles. Regulators are looking into whether FTX misappropriated customer payments. On Friday, a House subcommittee requested information and records related to the exchange’s bankruptcy from SBF and Ray.

On Thursday, a class action lawsuit was filed against SBF and many celebrity exchange promoters, accusing them of defrauding “unsophisticated investors.” The complaint, brought on behalf of investors by the Moskowitz Law Firm and Boies Schiller, alleges that Bankman-Fried violated US securities laws and that American consumers suffered over $11 billion in damages.

According to attorney Adam Moskowitz, FTX avoided registering its yield-bearing accounts as securities “so they could promote them to tens of millions of unaccredited investors.” “We have internal evidence that it was their plan.”

A lawyer has yet to appear on Bankman-behalf Fried’s in that lawsuit, which was filed in federal court in Miami.

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