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News

4 US Senators Doubt Sullivan & Cromwell’s Role In FTX Bankruptcy Case

January 11, 2023 - Around 3 mins mins to read

Key Ponts:

  • Four U.S. senators from different political parties have written to the bankruptcy judge overseeing the FTX case to request the appointment of an impartial examiner.
  • John Hickenlooper, Thom Tillis, Elizabeth Warren, and Cynthia Lummis are the senators.
  • They are asking Judge John Dorsey of the Bankruptcy Court of the District of Delaware to support a motion to appoint an examiner to have full authority and resources to conduct a thorough, objective investigation of the activities that led to the collapse of FTX.
In a letter to the bankruptcy judge overseeing the FTX bankruptcy case, a bipartisan group of four U.S. senators condemned one of the legal firms engaged in the case for conflicts of interest. They also demanded the appointment of an independent examiner.
4 US senators Doubt Sullivan & Cromwell's Role In FTX Bankruptcy Case

Both proponents and opponents of cryptocurrencies are represented in the group, which is pleading with Judge John Dorsey of the Bankruptcy Court of the District of Delaware to support a motion to appoint an examiner who will have full authority and resources to conduct a thorough, objective investigation of the activities that led to the collapse of FTX.

Senators John Hickenlooper, Thom Tillis, Elizabeth Warren, and Cynthia Lummis urged Judge Dorsey in a letter dated January 9 to grant a move to appoint an independent examiner to look at FTX’s operations before its collapse in November.

In light of the company’s bankruptcy proceedings, the U.S. congressmen said that Sullivan & Cromwell, the law firm currently in charge of the probe, had previously supplied legal services to FTX, and one of its partners even served as FTX’s general counsel.

4 US senators Doubt Sullivan & Cromwell's Role In FTX Bankruptcy Case

They add that significant questions about the firm’s involvement in the operations of FTX remain unanswered, including to what extent Sullivan & Cromwell attorneys had questions or suspected fraud or the absence of adequate legal controls, the actual scope of Sullivan & Cromwell’s representation of FTX, and, if not Sullivan & Cromwell, which law firm actually served as primary external counsel to the Debtors.

“Given their longstanding legal work for FTX, Sullivan & Cromwell may well bear a measure of responsibility for the damage wrecked on the company’s victims. Put bluntly, the firm is simply not in a position to uncover the information needed to ensure confidence in any investigation or findings,” the letter wrote.

The Justice Department announced on January 9 that it had seized more than 55 million shares of Robinhood and more than $20 million as part of the investigation against Bankman-Fried. US authorities have targeted assets previously controlled by FTX and its officials.

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Harold

Coincu News

Cynthia Lummis

Elizabeth Warren

FTX

John Dorsey

John Hickenlooper

Sam Bankman-Fried

Sullivan & Cromwell

Thom Tillis

US Senators

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.