FTX Investors Claim Sullivan & Cromwell 'Aided' and Encouraged Fraud
S&C has generated $180 million "or 10% of the total revenue the 900-lawyer firm publicly stated it collected in all of 2022," according to a new lawsuit by FTX investors.
February 18, 2024 at 04:54 PM
4 minute read
Law Firms - LargeWhat You Need to Know
- FTX investors filed a lawsuit against Sullivan & Cromwell, adding to its sprawling litigation.
- The investors claim that Sullivan & Cromwell had a conflict of interest in providing counsel to FTX pre- and post-bankruptcy.
- The investors point to a federal appeals court ruling that held an independent examiner should have been appointed to oversee the administration of the FTX bankruptcy proceeding.
Cryptocurrency investors have brought a lawsuit against Sullivan & Cromwell in Miami federal court for allegedly participating in FTX Group's multibillion-dollar fraud while it "extracted" millions of dollars in legal fees as counsel for FTX leading up to and following the exchange's unprecedented implosion.
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