Relationship Between FTX And Law Firm Thickens The Plot

December 24, 2022 9:07 pm Comments

The FTX scandal has taken a new turn as the plot continues to thicken…

New reports indicate that FTX paid law firm Sullivan & Cromwell roughly $12 million in legal fees to retain the firm as legal counsel 3 months before their bankruptcy filing.

Sullivan & Cromwell specializes in a variety of legal practices including bankruptcy law…

A timeline of payments to Sullivan & Cromwell from FTX indicates that the first payment was made to the legal firm on August 26th, 2022:

Hussein Faraj provided more insight and details on the relationship between FTX and Sullivan & Cromwell:

Coin Telegraph reports:

Based on the information provided, FTX paid at least $15.5 million to avail and retain the legal services of S&C. The filing further revealed that S&C currently holds nearly $9 million of the $12 million retainer amount.


ALM Law featured this curious bit of news:

Before he was arrested in the Bahamas on Monday, FTX founder Sam Bankman-Fried had planned to give congressional testimony the following day alleging that Sullivan & Cromwell attorneys pressured him, his co-workers, family, and friends to get the embattled founder to seek Chapter 11 bankruptcy protection.

Citing the $700 million in legal fees generated by the Enron bankruptcy, which Ray and Sullivan & Cromwell also handled, Bankman-Fried implied that Miller coordinated with Ray and Sullivan & Cromwell to get the firm signed on as lead bankruptcy counsel.

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