FTX Creditors Committee Selects Paul Hastings LLP For Representation

Key Points:

• A committee representing bankrupt crypto exchange FTX’s unsecured creditors, including millions of its customers, has hired Paul Hastings LLP to represent their interests in bankruptcy.
• The committee includes representatives from cryptocurrency-sector companies Pulsar Global, Coincident Capital International and Wintermute Asia.
• FTX founder and former CEO, Sam Bankman-Fried, was in FBI custody and extradited to the U.S. from the Bahamas on criminal charges.

Millions of FTX customers and other unsecured creditors are represented by a group that has hired a lawyer to advocate their interests in bankruptcy.

According to The Wall Street Journal, which cited persons acquainted with the situation, a nine-person committee appointed last Thursday selected Paul Hastings from a field of applicants.

Paul Hastings LLP will represent FTX creditors in the well-publicized bankruptcy proceedings involving the cryptocurrency exchange.

An official committee of FTX creditors, a significant constituency in the chapter 11 case, was created by the Justice Department’s bankruptcy monitor last Thursday. This committee will represent the interests of consumers and other stakeholders and will have its legal bills covered by the company.

According to court records, the group consists of representatives from Pulsar Global, Coincident Capital International, and Wintermute Asia.

Sam Bankman-Fried, FTX’s founder and former CEO, was taken into FBI custody and extradited from the Bahamas to the United States on criminal accusations.

As part of its continuing bankruptcy procedures, the company is aiming to recover more than $1 billion in worldwide assets.

In addition, FTT, the exchange’s native token, according to the U.S. Securities and Exchange Commission, said it was promoted as an investment contract and is a “security.”

FTX subsidiary company Alameda Research CEO Caroline Ellison consented to a plea agreement with the US Department of Justice. Gary Wang, a co-founder of FTX, followed suit. According to a press release from the SEC, Ellison and Wang have both admitted guilt to the many accusations that were made against them and did not dispute the SEC’s claims.

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Harold

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