Board of Trustees Appeals to FTX’s New Lawyers! Here’s Why

American officials, cryptocurrency exchange filed an appeal against the law firm Sullivan & Cromwell, which FTX agreed to defend the company in their lawsuit. The trustees claim that there is a conflict of interest between FTX and the law firm in question.

FTX The committee, which played an active role in the case, attributed its objection to two main reasons in the file it prepared. The Board of Trustees initially stated that the statements made by Sullivan & Cromwell do not comply with bankruptcy law.

The second reason for objection stems from the suspicion of conflict of interest. Officials revealed that Ryne Miller, the chief legal officer of the FTX exchange, had previously worked at S&C for eight years. Therefore, there is always a suspicion of a conflict of interest between the law firm and FTX.

With these two main arguments, the panel that went to court asked the court to cancel Sullivan & Cromwell’s handling of the FTX case.

Request by US Senators

Two days before the trustee’s appeal, four US senators wrote a letter to the bankruptcy judge, John Dorsey. Senators suggested that independent auditors be commissioned to examine the process prior to the stock market’s bankruptcy.