Regulation

Former FTX chief lawyer claims US legal counsel channeled business to S&C

A former FTX chief lawyer has accused the corporate’s US basic counsel of channeling enterprise to Sullivan & Cromwell (S&C) — the agency presently serving FTX as chapter counsel.

Daniel Friedberg, who was the chief regulatory officer of FTX till he resigned on Nov. 8, made the allegations as a part of a Jan 19. court docket filing.

The submitting was a declaration in assist of an FTX creditor’s objection to FTX’s plan to proceed utilizing S&C as its legal professionals all through its chapter case.

Within the declaration, Friedberg alleges that FTX.US lead counsel Ryne Miller, a former associate at S&C channeled enterprise in the direction of his former legislation agency throughout quite a few instances, with Friedberg stating:

“Mr. Miller knowledgeable me that it was crucial for him personally to channel a number of enterprise to S&C as he wished to return there as a associate after his stint on the Debtors.”

Friedberg claims within the submitting that he reminded Miller that his “allegiance” was to the debtor and to not S&C which he steered “continued to be an issue all through his work” at FTX.

Friedberg alleged after Miller’s hiring in early 2020, Miller requested whether or not he may rent his former legislation agency, to which Friedberg replied by saying it was Miller’s job “to solely rent one of the best exterior counsel for the job.”

Miller ended up participating S&C to be major counsel for FTX.US, FTX Derivatives (previously LedgerX), and Sam Bankman-Fried’s holding firm Emergent, wrote Friedberg.

He famous that S&C has additionally acted as private counsel to Bankman-Fried and one other key FTX govt, Nishad Singh.

Associated: FTX CEO says he’s exploring rebooting the alternate: Report

Whereas the submitting is just a declaration in assist of an FTX collectors objection to the retention of FTX legal professionals Sullivan & Cromwell LLP, it makes a variety of accusations which had been beforehand undisclosed.


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