Sam Bankman-Fried used to work out of Sullivan & Cromwell’s office in New York City. Now, the law firm is facing scrutiny over whether it can investigate FTX, the disgraced former billionaire’s crypto empire.
A bankruptcy court judge will hear arguments on Friday about whether the white-shoe law firm was too close to the troubled crypto exchange before it imploded.
But FTX CEO John Ray, who took the helm of the company in November, argued in court filings that knocking Sullivan & Cromwell off the case could “severely” or “irreparably” harm efforts to get money back to creditors and customers.
FTX was never a regular Sullivan & Cromwell client, but the firm did advise FTX on 20 specific matters, court documents show. The crypto exchange paid Sullivan & Cromwell $8.5 million to work on issues including its acquisition of LedgerX, failed crypto lender Voyager’s bankruptcy and regulatory concerns surrounding the Terra Luna collapse.