Sullivan & Cromwell Under Scrutiny Over FTX Collapse

[bonk]

Law firm Sullivan & Cromwell (S&C), which earned more than $171 million in legal fees from the FTX bankruptcy, is facing renewed scrutiny over its role in the exchange’s collapse.

Two days before the bankruptcy, S&C attorney Andrew Dietderich emailed Bankman-Fried recommending John J. Ray III as FTX’s chief restructuring officer in “a possible Chapter 11.” Ray filed for bankruptcy shortly after being appointed CEO.

Although FTX creditors sued S&C in February 2024 alleging it aided FTX’s fraud, the lawsuit was voluntarily dismissed in October 2024. S&C denies wrongdoing.

[kelson10]

Accountability needs to extend to everyone involved. Law firms can’t escape responsibility if oversight failed.

[EmTeam]

This scrutiny could expose how deep the FTX mess really went. Transparency is long overdue.