Judge John Dorsey will attempt to trace possible conflicts of interest with FTX between S&C and Sullivan & Cromwell. A team led by prosecutor Robert Cleary shall coordinate the probe. The investigation includes the firm’s actions and services in the Chapter 11 proceedings, where over $170 million has been invoiced to the estate. Sullivan & Cromwell views on FTX in the role of advisor or advocate have emerged in the dispute.
Cleary’s investigation, which has been initiated by the US Trustee, among others, will check whether Sullivan& Cromwell revealed all the issues related to FTX before affirming lead counsel. It will determine the integrity of the company’s actions, considering whether avoidance of ethical responsibility would influence the provision of independent advice.
The probe is going to look into the background of the bankruptcy investigation and any potential infiltration of fraudulent dealing during FTX’s history as of November 2022. The position of Sullivan & Cromwell pre-bankruptcy links with the FTX going through further charges of aiding FTX schemes and using fields of deceit to take control. The company’s claims to FTX on a shorter employment relationship are being challenged in litigation issues and investigations of what happened during FTX’s downfall.
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