FTX creditors are seeking damages against the law firm Sullivan & Cromwell for its prior involvement with the crypto exchange.

FTX bankruptcy case has unfolded to a new chapter as the exchange’s creditors have filed a class-action lawsuit against the law firm overseeing the case.

In a court filing on Feb. 16, FTX creditors alleged that law firm Sullivan & Cromwell, also known as S&C, “actively” participated in the “FTX Group’s multibillion dollar fraud,” asserting that the company benefited financially from FTX’s fraud.

“S&C knew of FTX US and FTX Trading Ltd.’s omissions, untruthful and fraudulent conduct, and misappropriation of Class Members’ funds. Despite this knowledge, S&C stood to gain financially from the FTX Group’s misconduct and so agreed, at least impliedly, to assist that unlawful conduct for its own gain.”
The lawsuit seeks damages for a number of counts, including civil conspiracy, aiding and abetting fraud, and aiding and abetting fiduciary breaches.

Sullivan & Cromwell is the century-old law firm overseeing the FTX bankruptcy proceedings. Previously, the firm reportedly served as outside counsel to the exchange in several deals, including FTX’s bid for the assets of Voyager Digital Holdings and the acquisition of LedgerX, receiving significant payments for its services. In the current bankruptcy case, S&C’s fees are estimated to reach hundreds of millions of dollars.
 

Get to know Godleak

Godleak crypto signal is a  service which provide profitable crypto and forex signals. Godleak tried to provide you signals of best crypto channels in the world.

It means that you don’t need to buy individual crypto signal vip channels that have expensive prices. We bought all for you and provide you the signals with bot on telegram without even a second of delay.

Godleak crypto leak service have multiple advantages in comparision with other services:

•  Providing signal of +160 best crypto vip channels in the world
• Using high tech bot to forward signals
• Without even a second of delay
• Joining in +160 separated channels on telegram
• 1 month, 3 months , 6 months and yearly plans
• Also we have trial to test our services before you pay for anything

For joining Godleak and get more information about us only need to follow godleak bot on telegram and can have access to our free vip channels. click on link bellow and press start button to see all features

Join for Free

☟☟☟☟☟

https://t.me/Godleakbot

Also you can check the list of available vip signal channels in the bot. by pressing Channels button.

The relationship between FTX and the law firm was forged by Ryne Miller, a former partner at S&C who joined the FTX Group as general counsel in August 2021. Miller allegedly channeled at least 20 cases from FTX to his former law firm.

“Mr. Miller informed me that it was very important for him personally to channel a lot of business to S&C as he wanted to return there as a partner after his stint at the Debtors,” said former FTX chief regulatory officer Daniel Friedberg in another court filing.

The complaint also notes that former FTX CEO Sam Bankman-Fried would often work in S&C’s offices in New York, “so close was the relationship” between the companies.

In a previous statement to Godleak, a spokesperson for the law firm denied any wrongdoing, saying S&C had “never served as primary outside counsel to any FTX entity” and had a “limited and largely transactional relationship with FTX and certain affiliates prior to the bankruptcy”.

S&C’s potential conflict of interest with the bankruptcy case has been scrutinized before. In January 2023, a bipartisan group of United States senators wrote to the judge calling for an independent examiner, claiming the law firm was “not in a position to uncover the information needed to ensure confidence in any investigation or findings.”