01-19-2023 icon

FTX Chair Battles to Retain Attorneys as Request for Dismissal Heightens

By Lucy Adegbe

Diverse players have raised voices to contend for the continued service of Sullivan & Cromwell as the principal attorney to FTX, referencing bias alongside an inadequate report.

The executive chair of the digital currency trading platform FTX has declined propositions that its legal corporation be dismissed as the chief attorney handling its insolvency situation.

John J. Ray III, who is in charge as the latest executive chair of FTX since the past November 11th, filed charges on Tuesday contending that Sullivan & Cromwell has, so far, been rational in handling all of the fiasco it has been kept under it to manage.

Ray proposed that allowing them to continue serving the exchange is the most ideal decision that will favour FTX lenders, adding that these legal service providers are in no way the antagonist in this scenario. The antagonists are receiving attacks from assigned criminal officers majorly because of news alongside backing they get β€œat my direction from the lender’s advisors,” he further explained.

United States administrator Andrew R. Vara, on January 14th, sent in legal charges to contend the continued service of the legal firm, referencing two distinct matters.

He alleged that Sullivan & Cromwell had refused to give adequate information about its associations and previous affiliations with FTX. Due to obtainable knowledge, a preceding affiliate of the legal corporation got appointed as an attorney to FTX just 14 months before the insolvency proceedings, he noted. 

In the meantime, Attorney James A. Murphy, with Twitter ID MetaLawMan, proposed on January 14th that the previous legal activities it carried out for FTX do not record as the corporation’s sole conflict of interest in the current matter.