Sullivan & Cromwell SUED, Accused Of Collusion
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February 17, 2024 7:50 pm
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Sullivan & Cromwell, the law firm overseeing the FTX bankruptcy, has been sued by investors claiming collusion between FTX and the firm.
Investors allege that Sullivan & Cromwell knew of the dire situation at FTX and understood that the crypto company would collapse.
More specifically, the investors feel that Sullivan & Cromwell actively aided in ‘schemes’ that furthered FTX’s fraud.
The 106-page class action lawsuit demands damages on behalf of FTX creditors for what is described as a breach of fiduciary duty.
The law firm has also been tapped to be Binance’s independent monitor, which is part of the Binance settlement deal with the U.S. government. Here’s the latest:
FTX investors sued Sullivan & Cromwell, accusing the law firm of aiding illicit schemes that helped advance a multi-billion dollar fraud before the crypto exchange’s collapse https://t.co/H1tg3RugTO
— Bloomberg Markets (@markets) February 17, 2024
New York law firm Sullivan & Cromwell, the same law firm handling FTX’s bankruptcy case, is set to be appointed as Binance’s independent monitor. The responsibilities are to ensure that Binance complies with its plea agreement and takes steps to address deficiencies in its…
— Wu Blockchain (@WuBlockchain) February 16, 2024
Coin Telegraph provided an excerpt from the lawsuit filing:
“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.”
Sunil, an FTX creditor, announced on Saturday: “My lawyers Moskowitz and Boies have filed a 106 pg class lawsuit against Sullivan and Cromwell for FTX creditors.
Over a year of requests from FTX creditors and hard work from my lawyers. FTX hired S&C partner Ryne Miller in 2021 as US GC.
Miller immediately gave business to S&C – 20 deals ($8m fees) in few years. S&C was primary counsel. Andrew Dietderich represented S&C, Miller FTX.”
My lawyers Moskowitz and Boies have filed a 106 pg class lawsuit against Sullivan and Cromwell for FTX creditors
Over a year of requests from FTX creditors and hard work from my lawyers
FTX hired S&C partner Ryne Miller in 2021 as US GC
Miller immediately gave business to S&C… pic.twitter.com/ghTBLSMgmr
— Sunil (FTX Creditor Champion) (@sunil_trades) February 17, 2024
FTX creditors launch class-action lawsuit against Sullivan & Cromwell, accusing the law firm of actively participating in FTX Group's multibillion-dollar fraud. The suit seeks damages for civil conspiracy, aiding and abetting fraud, and aiding fiduciary breaches.
— BlockVoyager (@BlockVoyagerAIO) February 18, 2024
According to Crypto News:
They also highlighted that the law firm’s engagement with FTX wasn’t merely superficial; citing financial figures from Bloomberg, the plaintiffs claim S&C profited immensely from the relationship, raking in approximately $8.5 million in fees during the 16 months before FTX went under.
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